An angel investor is an individual who provides financial backing to startups or small businesses in exchange for ownership equity or convertible debt. This type of investment is often sought by companies that are not yet ready for venture capital funding but have the potential for high growth.
The role of an angel investor is to provide capital and support to entrepreneurs who are starting or growing their businesses. This can include offering advice and mentorship, as well as helping to connect the entrepreneur with other industry professionals and potential customers or partners.
Overall, angel investors play a crucial role in the startup ecosystem by providing much-needed capital and support to entrepreneurs who are trying to turn their ideas into successful businesses. Without the help of angel investors, many startups would struggle to get off the ground, making this type of investment an essential component of the innovation economy.