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Angel investors or “Angel” are individuals who provides funding for start up businesses.
The origin of the term “angel” comes from wealthy businessmen in the early 1900’s who invested in Broadway productions.
These investors are looking for a higher return on investments than what can be found in more traditional sources, usually in exchange for ownership equity or convertible debt. Angels come from a variety of backgrounds. Their common denominator is their willingness to invest in unproven, untested businesses.
Individual angels, angel groups or networks typically provide from between $100,000 to over $1 million; filling the funding gap until venture capitalist can be found. The Small Business Administration estimates that there are over 250,000 angels in the United States making investments of over $20 billion to about 30,000 start up businesses yearly.
In addition to angel investors, there are other funding options.
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