Quick Definition

An angel investor is an individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.

Examples

• 1A tech entrepreneur receives $100,000 from an angel investor to develop a new app, giving up 10% equity in the startup.
• 2A group of angel investors funds a biotech firm's early-stage research in exchange for future royalties on any products developed.
• 3An angel investor provides seed funding to a small online retail company to enhance its marketing efforts and expand its product line.

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