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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

angel investor

A wealthy investor who provides capital for new business ventures.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
It is reported that some informal investors also directly invest in unlisted companies where they had no prior familiar or formal networks (Reitan and Sorheim, 2000).
Landstrom, H., 1998, "Informal Investors as Entrepreneurs" Technovation, 18, 321-333.
Informal investors are called the 4F's (Bygrave, Quill 2007) that means founders, family, friends and foolhardy strangers, also known as "business angels".
But while the availability of venture capital in Wales is important in encouraging the development of high growth businesses, policy-makers also need to be aware of the crucial nature of the start-up capital provided by entrepreneurs themselves and informal investors.
(1989) Attitudes and behaviors of informal investors toward early-stage investments, technology-based ventures and coinvestors.
However, one-third of the guarantees go to start-ups with an average loan size of Gld 105 000, an amount which should not be a competition for the private equity market, according to research on the average size of both informal investors' and venture capital investments in the Netherlands (K+V Organisatie Adviesbureau bv and Entrepreneurial Holding bv, 1996).
Informal investor networks: A case study from the United Kingdom.
Somewhat unusually for an informal investor syndicate, the members of the Metrogroup syndicate did not rely exclusively on their own social and business networks to identify investment opportunities: they also advertised in the financial press and were listed in venture capital reference books and on databases.
Business angel investors are informal investors who provide risk capital to new and growing businesses (Maxwell, Jeffrey, & Levesque, 2011).
Instead we have had to form an informal investors' committee to consider our options."
especially from informal investors - families, friends, and strangers."

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