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 ?
We don't have a ton of angel money funding the market; there's a lot of large and dominant companies, but not a lot in the midrange that creates the management talent that is the engine of startups.
If a start-up can overcome all these objections and deliver that fine management team and superior product, angel money is out there.
These examples follow a national trend toward a growing variety of funding options, ranging from seed and angel money on the low end of the deal flow spectrum to leveraged buyout funds on the high end.
In early August, the four-year-old company received $2 million in angel money from about 40 investors.
Some time between now and then, Colton said, some type of financial transaction will take place, whether it be more funding, angel money, an IPO (depending upon market conditions, of course) or even a merger.
If anyone could have found enough angel money in the state, it should have been Wiener, 33.