Angel Investor
An angel investor is an individual who provides capital to a startup or small business in exchange for equity. Angel investors typically invest their own money, rather than funds from institutional investors such as banks, venture capitalists or private equity firms. These investments come with higher risks and returns than those provided by traditional sources of financing because the investor does not receive any collateral in return for their investment. However, they can provide vital funds during a company’s early stages and often take on a mentoring role alongside their financial support.
Most angel investors are wealthy individuals who have made successful investments in other startups or businesses before investing in your company. They may also be members of networks that specialize in connecting entrepreneurs with potential sources of finance such as venture capitalists and banks. Angels typically look for opportunities that offer high growth potential with the ability to achieve market dominance quickly. The size of these investments ranges from $25,000 – $1 million depending on the stage of the business development and sector targeted by the entrepreneur seeking capital injection .
Angel investing has become increasingly popular within cryptocurrency circles due to its decentralized nature; many projects are now able to attract funding through initial coin offerings (ICOs) which allow companies to raise large amounts of money without having access to traditional forms of financing like bank loans or venture capital investment . Additionally, there is less risk involved compared to conventional forms since cryptos are not subject to government regulations such as securities laws . Thus, cryptocurrency projects can benefit greatly from angels willing to commit resources into helping them succeed and grow over time .
