angel investors , angel investors seed money, seed investing, funding

Angel investors

Angel investors are generally rich, wealthy people with management expertise or retired businessmen or women. Venture capitalists may be generalist or specialist investors depending on their investment strategy.

An angel investor or venture capitalist may invest even before there is a real product or company organized ( called angel investors seed money, seed capital or seed investing), or may provide offer venture capital to company in its first or second stages of development known as early stage investing. The angel investor or venture capitalist may invest in a company throughout the company’s life cycle. Sometimes the angel investor venture capitalist may help the company with an acquisition or merge with another company by providing liquidity and himself make an exit. Venture capitalists may invest in various industry sectors, various geographic locations, or various stages of a company’s growth or they may be specialists in some industry sectors, or may seek to offer venture investments for only a localized geographic area. Not all venture capitalists are willing to invest in start-ups.

Unlike other venture capitalists, angel investors are willing to provide funding for start-up businesses without asking for a large equity stake in the growing business. So there is a slight difference. Angels differ from traditional venture capitalists in another significant way: while conventional venture capitalists typically invest relatively large sums, angels often contribute relatively modest amounts to businesses very near the beginning of the start up cycle