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Angel Investment

/ˈeɪn.dʒəl ɪnˈvɛst.mənt/noun
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Angel investment is funding provided by affluent individuals to early-stage startups or entrepreneurs, typically in exchange for equity ownership. These investors, often called business angels, bring not just capital but also mentorship and industry connections, making them vital for bridging the gap between personal savings and larger venture capital rounds. In today's startup landscape, it's especially common in tech and innovation sectors, where high risks can lead to high rewards.

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One surprising aspect is that the first documented angel investment in tech was in 1976 when Intel co-founder Robert Noyce backed a startup, but today, the sector sees over 70,000 deals annually in the US alone, with returns sometimes exceeding 20 times the initial investment. For instance, Amazon's early backer Tom Alberg turned a modest angel investment into a fortune worth hundreds of millions.

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InvestopediaOxford English DictionaryAngel Capital Association

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