Angel Investor
What is an Angel Investor?
Also known as an angel funder, private investor, or seed investor, an angel investor is an individual that provides startups funding in exchange for equity. They usually support startups at the early stages of their development and offer seed investment so that companies have funding to start their business. As it’s a fairly high-risk investment option, seed investments are usually only 10% of the angel investor’s portfolio.
Understanding Angel investors
Unlike venture capital, angel investors usually invest their own funds rather than professionally manage other people’s investments. They offer monetary support to startups that are unlikely to get funding from other organizations—venture capitalists prefer funding more developed companies with bigger chances of success. As such, the higher risk also means that should the business be successful, the return on investment is extremely high.
These investments are often the push budding businesses need to flourish. According to Harvard research, startups supported by angel investors have a higher chance of success; the investment often goes hand in hand with “higher survival, additional fundraising outside the angel group, and faster growth measured through growth in web site traffic.”
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In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Karolina is a writer and journalist with a background in literary studies. She loves exciting tech solutions and art, and NFTs are often a perfect amalgamation of the two. Outside of work, she’s a plant mom, a vintage fashion enthusiast, and a gamer.
More articlesKarolina is a writer and journalist with a background in literary studies. She loves exciting tech solutions and art, and NFTs are often a perfect amalgamation of the two. Outside of work, she’s a plant mom, a vintage fashion enthusiast, and a gamer.
