Angel Investor Definition

Posted by | Posted in Business News | Posted on 19-09-2009

An angel investor is a person who invests in a business venture, providing capital for start-up or expansion. These individuals are looking for a higher rate of return than would be given by more traditional investments (typically 25 percent or more)./p pAngel investors are perceived of as filling the gap between the financing provided by family and friends and venture capitalists. Individual angel investors typically invest up to $150,000, but it’s becoming increasingly common for angels to operate as part of an angel syndicate (a group of angel investors), which raises their potential investment level accordingly. My article, How to Find an Angel Investor, gives some examples of active Canadian angel groups./p pUsually, an angel investor is looking for a personal opportunity as well as an investment. Often angel investors have business experience as well as money, and will want to play some sort of active role in managing the company./ppBecause he or she is interested in adding value to the company, it’s important for any business person thinking of accepting investment from an angel investor to be very clear about what the angel investor is bringing to the deal besides money, and to develop an understanding of what the angel investor would be like to work with./p pFor more about how to make your business attractive to an angel investor, see Attracting Angel Investors. Also Known As: Angel.Common Misspellings: Angle investor; angel invester.Examples: Because of an angel investor, Martha was able to buy the equipment she needed to expand her business.

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