Angel Investor
Crowdfunding
February 17, 2022Freemium
February 17, 2022Hallelujah! No, these investors (and sometimes networks of investors) are not literal angels. They’re called angels because they invest when startups are in early stages, the time with the most risk. The popular show Shark Tank offers a little glimpse into the world of angel investors (although it’s a tad dramatized and the decisions are made much faster than real life). Entrepreneurs present their unique products and services, and then Sharks offer investment, often in exchange for equity in the company. You may even own a product or have used a service that received funding on Shark Tank!
What is an Angel Investor?
An angel investor is someone that invests their own money into a startup. They offer their funding in return for debt or equity in the business. They may also be called private investors or seed investors.
Not everyone can give their pitch on Shark Tank. Never fear, though; there are other ways to find angel investors. You may be able to find local angels by networking in your Chamber of Commerce or by visiting your local Small Business Development Center. Online resources include sites like Angel Investment Network, AngelList, and MicroVentures.