An Angel investor is also called a private investor, angel funder, or seed investor. It is a high-net-worth person who offers financial backing to small entrepreneurs or start-ups in exchange for equity ownership in the business. Often, an angel investor can be an entrepreneur’s family or friend.
Unlike institutional venture capitalists that invest other individuals’ money, angel investor invests in an entrepreneurial firm. Recently, angel investing has greatly soared as individuals seek good returns on their money. Typically, angles come in two varieties, i.e., those you know and don’t know.