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What is an "Angel" Investment?


What is an "Angel" Investment?

It is a form of venture capital investment with the difference being that angels invest much earlier in the business growth where the risk is much higher and do not take as big a piece of the business in exchange for their investment.

They act like "angels" instead of "vultures."

I believe an Angel investor is someone who provides start up capital for new businesses in exchange for an equity stake in the new firm.

It has to do with investments placed by venture capitalist for a profit of the company in exchnage for the initial start-up cost.

I know my answer is not right...but it is to me...my angel investment is my children:)

Angel investors usually are independent wealthy people. It's the old addage of the rich getting richer.

It is someone that comes into a distressed business and lends money to keep them going a little longer. It saves them from going under.

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