Angel investors have proven themselves to be an integral part of the capital market, particularly for funding start-up companies and providing the seed-stage financing of businesses. The term “angel” refers to high-net worth individuals, or “accredited investors,” who typically invest in and support start-up companies in their early stages of growth. In the financial world today, angel investors are a critical and essential part of a healthy economy, particularly for the establishment and growth of early-stage companies. Experts estimate that, on a cumulative basis, the level of investments made by angels over the last 30 years has been double that of investments made by venture capitalists*.
*According to statistics published by the National Venture Capital Association and the Center for Venture Research, University of New Hampshire.