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November 29, 2019

What is an Angel Investor?

If you’re familiar with the crowdfunding space, you have likely heard the term “angel investor” before. But what exactly is an angel investor? 

 

Angel investors typically fall into a category of individuals who are accredited investors, but it is not a requirement. In fact, the phrase, similar to the word “startup,” is used pretty broadly. An angel investor is, generally speaking, someone who invests in a company at a very early stage with their own money in exchange for equity. This can even include family and friends. For serial angel investors, these deals are risky, and only typically comprise of about 10% of their investment portfolio. 

 

Angel investors are generally investing in the founder, rather than the business itself. In this sense, they tend to be viewed as the opposite of venture capitalists and instead help the companies take their first steps.

 

Because of the JOBS Act, you too can act as an angel investor for startups you believe in. Accredited or not, signup for KingsCrowd here to access the best analysis and research on the online private markets.


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About: Olivia strobl

Olivia comes to KingsCrowd with a background in venture capital and technology. She spent time at Glasswing Ventures, an AI-focused venture fund in Boston, before joining the KingsCrowd team. There she helped develop machine learning algorithms for the opportunity qualification of preseed and seed-stage startup companies. Prior to her time at Glasswing, Olivia worked in a lab studying the neural correlates of attention. She holds a degree in Neuroscience from Wellesley College.

View Olivia strobl's articles

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