27 November 2014
An angel investor is a person who invests in highly risky companies, typically before those companies have any revenue or profits. Usually these companies are start-ups and/or small businesses that typically have little or no access to capital markets.
Most angel investors are private individuals. Fund-raising with angel investors is typically done more casually, using networking and more verbal conversation.
One of the most common and controversial characteristics of working with angel investors is that they may take active management roles and board seats in the companies in which they invest. This often means that entrepreneurs give up some control over their businesses. However, angel investors also can provide crucial managerial or technical expertise, particularly in areas where the entrepreneur is less confident.
CAclubindia
