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What is an angel investor?

Angel investors have also been called informal investors, angel funders, private investors, seed investors, or business angels. They seek prospects through online crowdfunding platforms or join networks that pool capital for greater impact.

Should an entrepreneur seek an angel investor?

An entrepreneur may seek an angel investor over more conventional financing. The terms tend to be more favorable and, in fact, the angel investor doesn't expect to get the money back unless the idea succeeds. They often seek an equity stake and a seat on the board.

Why do non-accredited investors get called angel investors?

Non-accredited investors, like friends and family who decide to invest in your startup, might get called angel investors—if only because investing in a risky new startup is a pretty angelic thing to do. Data effective 1/10/23. At publishing time, rates, fees, and requirements are current but are subject to change.

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