A business angel is an individual investor who provides capital to a start-up company or early stage businesses in exchange for equity. Business angels typically invest their own money and provide a range of services, such as mentoring and advice, to the start-up company. They may also connect the company to their own networks.
Business angels are typically entrepreneurs or executives who have sold their businesses and are looking for new investment opportunities. Most business angels are wealthy individuals who are not just looking for a financial return but also want to help a business grow.
They may be the first source of capital for a business, or they may invest later on in a business’s development, often alongside venture capital firms or other angel investors.
The investment can mean putting money into a business in exchange for equity or loan capital.
Business angels may also help a business by mentoring the owner or management team, or by providing other business advice.