Angel investors

An angel investor or angel popularly known as a business angel, informal investor is a wealthy individual who provides capital to start up a business generally in exchange for convertible debt or ownership equity. Quite a few angel investors formulate themselves into an angel group or angel networks to share research and increase their investment capital.

Angel Group, unlike venture capitalists, who manage the pooled money of others in a professionally-managed fund typically, invests their own funds. Reflecting the investment judgment of an individual, the actual entity that provides the funding may be a trust, business, limited liability company, and investment fund, owned by the angel.

Angel group capital fills and capacitates the space and gap in start-up financing between "friends and family humorously given the acronym FFF, which stands for "friends, family and fools providing seed funding, and venture capital. Although it is quite difficult to find angel investors and raise more than a few hundred thousand dollars from friends and family, most traditional venture capital funds are not able to consider investments under US$12 million.

Thus, <a onClick="javascript:pageTracker._trackPageview('/outgoing/article_exit_link');" href= http://www.launchfn.com/id245.html >angel group</a> investment is a customary and prevalent second round of financing for high-growth start-ups. It is a challenge to <a onClick="javascript:pageTracker._trackPageview('/outgoing/article_exit_link');" href= http://www.launchfn.com/id253.html>find angel investors</a> as Angel investments generally generates up far more capital than the amount.

Typically if someone has come up with a world-changing idea or at least an industry-changing idea or has a business plan discovered or invented something or built a prototype, all you require is those few thousand bucks-- to get your new venture up and running. All that stands between you and your start up, in other words, is an angel.

Typically among the earliest sources of funding for would-be entrepreneurs, angels are individual investors who provide fledgling companies with seed capital--anywhere from a few thousand dollars to $1 million. Angels play an important role by investing in companies that venture capitalists consider too unproven and risky. In fact, during 2004 only 3,000 new firms were funded by VCs, while an estimated 48,000 businesses received start-up capital from people who identify themselves as angel investors. The most famous angel investment in recent years was made to the Google founders when they described their ideas to an angel investor.