logo share us

Angel Investor

   

Definition: an Angel Investor is an affluent individual who invests a relatively small amount of his own capital in a startup company, typically in an early stage, following initial seed funding by family and friends of the entrepreneur and before venture capitalists are considered.
In return the AI usually receives convertible debt or ownership equity. Angel investments bear very high risk and are usually subject to dilution from future investment rounds. That's why AIs usually expect a potential return of at least 10 times their original investment by means of an exit strategy or initial public offering.
AI is a form of private equity, like venture capital and crowdfunding.
Also called a business angel.


   
   
💡

Learn more about Angel Investors.



More on corporate finance: Business Divestiture, Corporate Finance, Crowdfunding, Debt Restructuring, Private Equity, more on corporate finance...


MBA Brief offers concise, yet precise definitions of concepts, methods and models as taught in a study Master of Business Administration.

We like to keep things short, and provide links to learn more about your subject.


add us to your desktop

Add MBA Brief to your desktop / iPad

   

© 2024 MBA Brief - Last updated: 24-7-2024  -  Privacy   |   Terms