Angel Investor
Definition
An angel investor is a high-net-worth individual who provides early-stage capital to startups in exchange for equity or convertible instruments, typically investing between $10,000 and $250,000. Angels often invest at the pre-seed or seed stage and may also provide mentorship, industry connections, and strategic advice.
Overview
Angel investors are individuals who invest their personal capital into startups at the earliest stages, often when the company is too nascent for institutional venture capital. Angels typically invest through SAFEs or convertible notes rather than priced rounds, and check sizes range from $10K–$250K per deal.
Beyond capital, the best angel investors bring domain expertise, customer introductions, hiring referrals, and fundraising credibility. An angel with a strong reputation in your industry can serve as a signal to future investors that the opportunity has been vetted by someone with relevant experience.
Angels often operate individually or through angel syndicates and networks (AngelList, angel groups) that pool capital for larger investments. Some angels are former founders who invest their exit proceeds, giving them firsthand operational experience. Founders should evaluate potential angels not just on check size but on the value they add beyond money.
Example
A former SaaS founder invests $50K via a SAFE in a seed-stage company, makes introductions to three potential enterprise customers, and helps recruit the first VP of Engineering.
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