What is an angel investor?

Answer:
Angel investors are individuals who invest money

in start up business operations or provide capital for the expansion of existing companies. They tend to be affluent individuals who are willing to risk money on new and expanding business ventures in the hopes of realizing a high rate of return on their investments.

Some angel investors want to lend their expertise and/or contacts to the company, and others even want to participate in daily business operations.

Many angel investors work independently and others form groups, which are often referred to as angel syndicates. Angel investors often seek to provide capital for companies doing business in industries with which they are familiar. Many times, they prefer to receive equity in the company in exchange for their investment rather than loaning money to the business.