An angel investor (also known as a private investor, seed investor or angel funder) is a high-net-worth individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity in the company. Often, angel investors are found among an entrepreneur’s family and friends. Depending on how the start up is raising money, angel investors may also need to be accredited investors.
Related Terms: Accredited Investor, Qualified Client, Qualified Purchaser
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