angel investor

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Angel Investor

A high net worth individual who provides financing to a start-up, either in exchange for convertible debt or equity. Among start-ups, they are thought of as a bridge between loans from family and friends and venture capital, though angel investors are themselves often personally connected to the business. Angel investors take on a great deal of risk when they invest in these start-ups; they are also subject to dilution at the start-up's IPO. Therefore, they usually require a high rate of return in exchange for their financing. They are informally known as angels or informal investors.

angel investor

A wealthy investor who provides capital for new business ventures.
References in periodicals archive ?
When you get together in an angel group, I say there are three core benefits.
BAE has a sub-network of the biggest angel groups within the territories represented with Archangels being the only Scottish player among the 14-strong BAE Club.
The researchers suggest that firms seem to "self-censor" when they apply to angel groups in the less venture-friendly markets, reflecting the fact that the angel investors themselves are more risk-averse or less experienced in assessing very-early-stage investments.
Therefore, given the poor performance of Welsh angel investment over the last couple of decades, perhaps the time has come to look more closely at how angel groups have helped to create a vibrant financial environment that is making a significant contribution to Scottish economic growth and, more importantly, to see if we can do the same over here in Wales over the next few years.
Law firm Clarion is also backing the Angel Groups venture - offering investors an insight into the legal and tax implications of investing in a small business and providing innovative businesses with valuable advice on protecting their intellectual property.
Some have suggested that this is largely due to the creation of LINC Scotland as the national association of business angels in 1993 and its help in establishing and supporting new angel groups.
I think the reason women aren't as involved in the preexisting angel groups in the GCC and the region at the moment primarily is because of lack of awareness," said Freiha.
John Huston, founder of one of North America's largest Angel Groups, the Ohio Tech Angel Fund and a key note speaker at the 2014 Angel Summit, says the only constant entrepreneurs have is 168: the number of hours in a week.
WOMENA Co is a Dubai-based women-only angel group that provides a supportive, professional network and dependable guidance, to allow women to invest in new companies in the MENA region.
Co-authored with the Kauffman Foundation, the report is the first of its kind to be targeted at international audiences, and highlights the successes and challenges of angel groups in challenging markets.
The series A financing to Powerhouse Dynamics garnered interest from early-stage venture capital firms and angel groups, the institute, which is part of the university's Stephen M Ross School of Business, said.
Richard Johnston, investment director of Oxygen Investors, said: "Many members of angel groups have been cautious with their wealth throughout the recession.