What is an Angel Investor?
Angel investors are high net worth individuals who invest a portion of their total investment portfolios directly into private, high-risk, early-stage ventures. They provide these emerging companies with seed and startup capital that had, in the past, been provided by venture capital firms (who now typically focus on larger, more mature investments.) The Angel investor's goal is to achieve higher returns than the typical public markets provide. Because they enjoy helping entrepreneurs grow their businesses, many Angels are active investors who, in addition to their money, contribute their time, experience, and valuable industry contacts that can be essential to the company's success. Typically Angels specialize in industries or technologies they understand, and invest in companies within close geographic proximity to maximize the value added. Often investors join Angel groups to have exposure to the latest technologies and innovative business concepts. One of the most pervasive benefits of Angel membership is the development of a strong network of peers with diverse backgrounds.