angel investor
Quick Summary
An angel investor is typically a wealthy individual who invests their own money in new or early-stage businesses in exchange for an equity stake in the company. These investors, often friends or family of the entrepreneur, provide crucial capital to help startups get off the ground. While they may have industry experience, angel investors are generally passive, meaning they don't actively manage the business. This contrasts with venture capitalists, who are professional firms that invest larger sums and often take a more hands-on role in company management. Angel investors play a vital role in the early stages of capital formation for businesses.12
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