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Angel Investor

Definition

An individual who provides early-stage funding to startups in exchange for equity, helping new businesses grow.

What to consider

  • Assess how much equity you’re willing to trade for early-stage funding.
  • Consider the benefits of the investor’s experience and connections.
  • Review the investment terms carefully to balance risk and reward.

Real world scenarios

  • When Mia launched her tech startup, an angel investor provided crucial seed funding in exchange for a small equity stake, helping her bring the idea to market.

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