Angel Investment
/ˈeɪn.dʒəl ɪnˈvest.mənt/
Angel investment is funding provided by wealthy individuals (called angel investors) who invest their personal money in early-stage startups in exchange for equity ownership.
Angel investment is funding provided by wealthy individuals (called angel investors) who invest their personal money in early-stage startups in exchange for equity ownership.
Angel investment involves high-net-worth individuals using their personal wealth to back promising startups, typically investing smaller amounts than venture capital firms whilst offering valuable mentorship and industry connections alongside their financial support.
Angel investment sits between friends-and-family funding and venture capital, with angels typically investing £10,000 to £100,000 per deal, making decisions faster than VCs, and often providing hands-on guidance based on their entrepreneurial experience.
Startups usually pursue angel investment after proving initial concept viability but before they're ready for larger institutional funding, often during the seed stage when they need capital to develop their product or gain early customers.
Angel investors are typically successful entrepreneurs, retired executives, or wealthy professionals who have both disposable income and relevant industry expertise, often investing in sectors they understand well from their professional background.
Angel investors expect significant returns (often 10x their investment within 5-7 years), active involvement in strategic decisions, regular updates on company progress, and the opportunity to add value through their experience and networks.
You can find angel investment through networking events, startup accelerators, online platforms that connect entrepreneurs with investors, introductions from other entrepreneurs, or by approaching successful business people in your industry directly.
Angel investment provides not just funding but also valuable mentorship and connections, though it does mean giving up equity ownership and potentially accepting investor input on major business decisions.
