Comparison Terms
Angel Investor
Also Known As
AngelBusiness Angel
An angel investor is a high-net-worth individual who provides capital to early-stage startups in exchange for equity, often investing before institutional venture capital.
What is an Angel Investor?
Angel investors are individuals who invest their own money in startups. The term comes from Broadway, where wealthy individuals would fund theatrical productions. Angels often invest earlier and in smaller amounts than VCs.
Angel Investor Characteristics
| Aspect | Typical Range |
|---|---|
| Investment | $10K - $250K |
| Stage | Pre-seed, Seed |
| Equity | 1-10% |
| Decision | Individual |
Types of Angels
- Operator Angels: Former founders/executives
- Professional Angels: Full-time investors
- Casual Angels: Occasional investors
- Angel Groups/Syndicates: Organized networks
What Angels Provide
- Early capital when VCs won't invest
- Mentorship and advice
- Network connections
- Social proof for future fundraising
Angels vs Studios
| Aspect | Angel | Studio |
|---|---|---|
| Capital | $10K-250K | $100K-1M+ |
| Involvement | Advisory | Operational |
| Support | Network | Full resources |
| Equity | 1-10% | 30-50% |
Example Usage
“Before raising from VCs, they closed a $300K angel round from former tech executives.”