Angel investor
An holy person investor or angel (also known as a business angel or informal investor) is an wet individual who provides superior for a business start-up, usually in exchange for convertible debtor ownership equity. A teeny-weeny simply increasing number of angel investors organize themselves into angel groups or angel networks to share research and pool their enthronisation capital
Source and extent of funding
Angels typically invest their own funds, unalike accident capitalists, who manage the pooled money of others in a professionally-managed fund.  Although typically reflecting the investiture judgment of an individual, the actual entity that provides the funding may be a trust, business, limited liability company, investment fund, etc. The Harvard discover by William R. Kerr, Josh Lerner, and Antoinette Schoar tables evidence that angel-funded startup companies are little likely to fail than companies that rely on other forms of sign financing.
Angel capital fills the gap in start-up financing in the midst of friends and familyâ€"(sometimes humorously given the acronym FFF, which stands for friends, family and fools) who provide seed fundingâ€"and venture capital.
Although it is usually difficult to raise more than a a couple of(prenominal) hundred thousand dollars from friends and family, most traditional venture capital funds are usually not able to deal investments under US$12 million. Thus, angel investment is a common second round of financing for high-growth start-ups, and accounts in total for almost as much money invested each year as all venture capital funds combined, but into more than 60 times as many companies (US$20.1 trillion vs. $23.26 billion in the US in 2010, into 61,900 companies vs. 1,012 companies).
Of the US companies that veritable angel funding in 2007, the average capital raised was about US$450,000. However, there is no set essence for angel investors, and the range can go anywhere from a few thousand, to a...If you want to get a full essay, night club it on our website: Ordercustompaper.com
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