Angel Investor by Akhilesh Ganti

TL;DR - An angel investor is typically a wealthy individual who invests in early-stage startups.

Helpfulness - 3

Tags - angel investor, early-stage, startup, seed accredited investor, portfolio

Questions answered:

  • What is an angel investor?
  • How do angel investors compare to VCs?

Summary:

  • An angel investor is a wealth individual who finances entrepreneurs, typically in exchange for equity.
  • Angel investors invest at the early stages of a company.
  • Angel investments usually account for less than 10% of an angel investor’s portfolio.
  • Because angel investors typically care more about the entrepreneur than the business, they offer more favorable terms than other lenders (unlike venture capitalists).
  • Angel investors are typically accredited investors.
  • The effective IRR for an angel investor’s portfolio is approximately 22%.
  • Angel investing has fostered innovating, leading to economic growth.

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