Angel Investor

An angel investor is an individual who invests their own money (as opposed to a fund's money) into early-stage startups. Angel investments typically range from $5K to $250K per deal and often occur before or alongside institutional investors. Angels frequently invest via SAFEs or convertible notes to avoid the legal costs of a priced round.

The best angel investors provide value beyond capital. Former founders who have built and exited companies can offer tactical advice, warm introductions to customers and later-stage investors, and emotional support through the inevitable ups and downs. Industry-expert angels bring domain knowledge and credibility. Celebrity or influencer angels can provide visibility and marketing lift.

Angels typically operate differently from VCs. They make investment decisions faster (sometimes after a single meeting), require less due diligence, and are generally more founder-friendly on terms. However, they also invest smaller amounts, may be less sophisticated about startup economics, and can become difficult to manage if they have unrealistic expectations. A syndicate of 20 small angels can create more administrative overhead than a single VC writing the same total check.