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 ?
The value of putting up an angel organization, whatever structure you take, is it has to be something that delivers more people working on an activity, and therefore, having more time available to make it happen, making angel groups an attractive course of action.
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.
They gathered data on 295 startups funded by these angel groups and 1,287 that they did not fund.
angel network funding stuck at PSa year Instead, some have suggested that this is largely due to the creation of LINC Scotland as an association of business angels in 1993 and its support in establishing and supporting new angel groups, especially through close links to Scottish Enterprise (the Caledonian equivalent of the Welsh Development Agency).
Angel Groups - Yorkshire aims to bring together enterprising business people and wealthy individuals who can help the businesses to fulfil their potential with investment and support.
There are plenty of seed investors, friends, family etc., and the venture capital funds, later stage series B, series C private equity firms are starting to emerge, but there is nothing going on as far as angel groups," said Dumonceaux.
When we came here we joined a few angel groups, we talked to a few of the failed angel groups and saw the problems and we quickly saw that we were the only women in the room and that there was a desperate need to build a safe zone almost for these women to be able to come in, learn, voice their concerns, ask a question and not be scared that it is something that might be seen as stupid," said Freiha.
Co-authored with the Kauffman Foundation the report is the first of its kind to be targetted at international audiences, and highlights the successes and challenges of angel groups in challenging markets.
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.
Their membership includes many active individual investors and most of the main Scottish angel groups and syndicates.