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 ?
AaAaAeA{Aa idea is to create an angel network in Lebanon,AaAaAeA{AaAaAeAo explains Nicolas Rouhana
"Even though they get a real buzz out of their involvement, this certainly isn't a hobby," says Harry Stott, Director of the University of Warwick Science Park's Minerva business angel network.
Since 1998, Oprah's Angel Network has raised more than $35 million in donations from the public.
To find angel networks, start with the Internet and try several combinations of key words such as "angel capital," "angel investors," or "angel finance." Several choices will appear.
The second factor which biases the average investment size upwards is that it seems reasonable to assume that investors who pay subscriptions to join business angel networks will comprise more serious and wealthier informal investors who are actively seeking investment opportunities and so will invest more frequently and make larger investments.
The fund is planning to partner with venture capitalists, economic development groups and angel networks. About half of its investments are supposed to be in western Pennsylvania companies.
Business angel networks have also been shown to be effective as a conduit to financing early-stage companies.
The fund has been launched by a partnership of three of the UK's leading angel networks: OION, GEIF in Cambridge and SWAIN based in Bristol, with fund management provided by Cambridge-based NW Brown Group.
'We're pleased to be able to report an increase in the number of deals completed after what has been a pretty lean two years for business angel networks throughout the UK and Europe, although we see these figures as only the start of an investment revival' XAnos ended March 2005 with a very strong dealflow pipeline in place and we expect to see a further rise in activity over the rest of the year.'
"However the present `matchmaking' model, adopted by most UK Business Angel networks, does not mobilise the full power of angel investing.
Angel networks are popping up across the country, creating databases that connect investors with businesses that need seed money or expansion capital.
IAN has been functioning with the UK Trade and Investments and UK-based angel networks as it anticipates to establish its presence there.