Angel / Angel funder / Angel investor / Business angel

A business angel is an individual or group of individuals with capital. Angels want to invest in young, preferably high-growth startups implementing innovative ideas.

A business angel is typically the first "professional" investor in startup after seed capital. The angel funder is usually alone or works in a loose association of friends. Angel investors make investment decisions more flexibly than larger venture capital corporations. 

Venture capital corporations have established practices and expectations. Investment decisions are made based on the obligations set by the owners. Of course, business angels do not work against themselves either. Therefore, they usually apply the same criteria in their investment decisions as venture capital corporations: they examine the originality, innovativeness of the idea, the team and scalability. Even so, they are typically more flexible than venture capital corporations. 

Since angels bring their own personal wealth to the fair to for financing a start-up undertaking -up company, their yield expectations is also high. At the same time, they are generally willing to sacrifice more of their free capacity to manage the company than larger venture capital corporations. In the case of professional business angels, this is coupled with good cooperation with the with the founders. For the founders, cooperation with them can involve significant business-type knowledge. 

Last edited: February 14, 2023

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