Angel investors, alongside venture capitalists, are typically good sources of finance for start-ups. Many start-up businesses are considered too risky for funding (in the form of a loan) from banks. An angel investor is usually willing to take a risk in firms with high growth potential, as the investor can generate large financial rewards, from future profits the company generates, or by selling his stake in the business (at a much higher price than he paid for it.)
Definition: What is an Angel Investor?
An angel investor is a high net worth individual who is willing to provide capital for new, high-growth businesses, in return for equity in the firm. The TV show Dragon’s Den is a good example of angel investors. As well as providing funding, an angel investor may also advise the business, and use his/her relevant contacts to further the firm’s aims.
Angel investors may join together (to form a network), and pool their capital and resources. These types of investors tend to invest in several start-ups, giving them a portfolio of investments. As most new businesses fail, angel investors invest in many companies so that they can still turn a profit even if just 1 out of 10 companies (in their portfolio) is successful. A study, conducted in 2009, found that there were around 4,000- 6,000 angel investors in the UK, providing an average of £42,000 (approximately $60,000) per deal.
New Sources of Finance
In recent years, many new crowd funding sites, such as Crowd Cube, have sprung up, giving businesses an alternative to conventional sources of finance. To some extent, the people providing funding for
start-ups via these crowd funding sites are angel investors. According to Crowd Cube, they have raised nearly $250 million via their online platform. You can signup here.
For more information on finding an angel investor, or becoming one, you should visit Angel Den’s website.
Trusted & Regulated Stock & CFD Brokers
What we like
- 0% Fees on Stocks
- 5000+ Stocks, ETFs and other Markets
- Accepts Paypal Deposits
Min Deposit
$200
Charge per Trade
Zero Commission on real stocks
64 traders signed up today
Visit Now67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Available Assets
- Total Number of Stocks & Shares5000+
- US Stocks
- German Stocks
- UK Stocks
- European
- ETF Stocks
- IPO
- Funds
- Bonds
- Options
- Futures
- CFDs
- Crypto
Charge per Trade
- FTSE 100 Zero Commission
- NASDAQ Zero Commission
- DAX Zero Commission
- Facebook Zero Commission
- Alphabet Zero Commission
- Tesla Zero Commission
- Apple Zero Commission
- Microsoft Zero Commission
Deposit Method
- Wire Transfer
- Credit Cards
- Bank Account
- Paypall
- Skrill
- Neteller
What we like
- Sign up today and get $5 free
- Fractals Available
- Paypal Available
Min Deposit
$0
Charge per Trade
$1 to $9 PCM
Visit Now
Investing in financial markets carries risk, you have the potential to lose your total investment.
Available Assets
- Total Number of Shares999
- US Stocks
- German Stocks
- UK Stocks
- European Stocks
- EFTs
- IPOs
- Funds
- Bonds
- Options
- Futures
- CFDs
- Crypto
Charge per Trade
- FTSE 100 $1 - $9 per month
- NASDAQ $1 - $9 per month
- DAX $1 - $9 per month
- Facebook $1 - $9 per month
- Alphabet $1 - $9 per month
- Telsa $1 - $9 per month
- Apple $1 - $9 per month
- Microsoft $1 - $9 per month
Deposit Method
- Wire Transfer
- Credit Cards
- Bank Account
Share
