Author - Akhilesh Ganti, https://www.investopedia.com/akhilesh-ganti-4590113
Source - https://www.investopedia.com/terms/a/angelinvestor.asp
TL;DR - An angel investor is typically a wealthy individual who invests in early-stage startups.
Helpfulness - 3
Tags - angel investor, early-stage, startup, seed accredited investor, portfolio
- What is an angel investor?
- How do angel investors compare to VCs?
- An angel investor is a wealth individual who finances entrepreneurs, typically in exchange for equity.
- Angel investors invest at the early stages of a company.
- Angel investments usually account for less than 10% of an angel investor’s portfolio.
- Because angel investors typically care more about the entrepreneur than the business, they offer more favorable terms than other lenders (unlike venture capitalists).
- Angel investors are typically accredited investors.
- The effective IRR for an angel investor’s portfolio is approximately 22%.
- Angel investing has fostered innovating, leading to economic growth.
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