Angel Investors (or simply Angels) are affluent individuals who provide capital for business start-ups, usually in exchange for an equity stake. Unlike venture capitalists, angels typically do not pool money in a professionally-managed fund. However, angel investors often organize themselves in angel networks or angel groups to share research and pool investment capital. (1) Startup (or start-up, aka System startup) refers to the short period of time, or system state a computer is in, immediately after switching it on. ... The British Actors Equity Association (now called Equity) is the British actors trade union. ... Venture capital is a general term to describe financing for startup and early stage businesses as well as businesses in turn around situations. ... Fund may refers to Funding, or providing capital. ... Investment is a term with several closely-related meanings in finance and economics. ...

Angel capital fills the gap in start-up financing between the "three F" (friends, family and fools) and venture capital. Most venture capital funds will not consider investments under $1 million, while it is difficult to raise more than $100,000 - $200,000 from friends and family. Thus, angel investment is a common second round of financing for high-growth start-ups.

Angel investments bear extremely high risk, and thus require a very high return on investment. Typical angel investments require a return of at least 15-20 times the original investment within 5 years, as well as an exit strategy - plans for an IPO or an acquisition. Angel financing is thus one of the most expensive sources of funds. However, cheaper sources of capital, such as bank financing, are not available for most early-stage ventures. This article is about the concept of risk. ... In finance, the return on investment (ROI) or just return is a calculation used to determine whether a proposed investment is wise, and how well it will repay the investor. ... EXIT or exit is a name for several entities: An exit can denote a way out of a building, city, or place. ... Wikipedia does not yet have an article with this exact name. ... The phrase mergers and acquisitions (M&A) refers to the aspect of business strategy and management dealing with the merging and/or acquiring of different companies. ... The essential function of a bank is to provide services related to the storing of value and the extending of credit. ...

Angel investors are often retired business owners or executives, who are looking for a "hobby", not just monetary return. Thus, aside from funds, angel investors can sometimes provide valuable management advice and important contacts.

See also

• Private equity
• Entrepreneurship
• Pre-money valuation