Who is Angel Investor ?
An angel investor is one who has a lot of wealth. And he financially supports small startups. In return, he takes ownership equity in his company.
When an angel investor invests in any company, then that company is started. When a company starts, the chances of its failure are very high in the beginning itself.
So an angel investor has a huge risk. Will he get his money back or not? which he has invested. Angel investors invest mostly through online angel investment platforms.
The term Angel originated from Broadway Theatre. Because these wealthy people used to give money for theatrical production. So for this reason he started being addressed as Angel. Otherwise this theater would have been closed.
In a way, the profession of angel investors is very helpful. These angel investors are mostly retired entrepreneurs. These people mentor new entrepreneurs.