What Is an Angel Investor
What Is an Angel Investor
Answering the Question What Is an Angel Investor?
Angel investors have been around for many years but experienced business-savvy angel investors are a relatively new phenomenon and some are wondering: what is an angel investor?
An angel investor is a person that provides seed money to young businesses and for launching startups. The capital committment is usually tied to some element of control or advising to the company. Angel investors are often retired, wealthy individuals with business experience or have spent years within a specific industry. The angel investor will draw from that experience to help grow the business while making a profit from it.
Angel investors will charge a fee–often 1-2% fee and 10-20% of whatever profits. The investor understands that many business ventures do not succeed but the hope is that one of these ventures will blossom into a success and the angel investor will receive a high return for his stake in the company.