Angel Investors

Angel Investors seek startups to invest in for part ownership of the company. These types of investments rarely exceed roughly 10% of their portfolios because of the high risk. Company owners typically find these types of investors within their own families or friend circles.

Angel Investors invest in the entrepreneur rather than the returns from the investment and are typically helpful towards the entrepreneur. Because of this, they foster innovation and promote economic growth. Often retired entrepreneurs or executives will become Angel Investors for reasons other than return on their investments.

Angels typically invest their own money, unlike Venture Capitalists who invest pooled money. There is no bottom limit to their investments that can range from a few thousand to a few million. This differs from Venture Capitalists who have a manager and a committee that decide on where their money goes.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: