What a poetic name for a financial term. Does it really have to do anything with Investment Industry? Yes, it does!
Angel Investor is a private investor who gives you money for your business. Usually this is a wealthy person who can afford investing money in start-ups.
Most of the start-up companies have no budget or limited budget that consists of entrepreneur's savings, loans or any other equity. But this might be not enough to start a company.
You might also not be able to go public and offer shares on the stock market since you are too small and do not fulfill the SEC Requirements. Then you start looking for an Angel Investor, a wealthy individual who will believe in your idea and your business.
For the money that you get from Angel investors you will have to pay by giving them partial rights on your company and making them Directors of the Board. They are going to participate in all the decision making events and you will have to accept their sometimes unprofessional opinion on how to manage your company or how to improve the product.
Today it's not hard to find and Angel Investor. All you need is to search for some Investor's Clubs, Communities or Organizations. You also need to write a business plan and make a presentation that will show the importance of your business and its future growth. Yes, you shouldn't forget that you are dealing not just with an Angel but with an Investor. And as we know investors give their money only when they expect high returns.
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