An angel
investor is an individual or company that invests funding as well as time and
expertise to support motivated and talented start-up founders to develop
business projects in beginning-stage before those startups have the ability to
raise venture capital.
Other terms
for angel investors include seed investors or private investors.
The angel
investor supplies the financial support needed to start a business and business
guidance, either as a one-time investment or on an ongoing basis, and receives
ownership equity or a share of the revenue in return. As a result, angel
investors support both innovation and economic growth.