Angel investor

An individual investing their own money, usually at the earliest stage.

Example

A former founder putting in $25,000 pre-seed.

Important

Angels decide alone, so they move fast. The best ones bring introductions and scar tissue worth far more than the cheque.

Related terms

• Venture capital (VC) — Professional investors who manage a fund of other people's money and invest it in high-growth startups in exchange for equity.
• Pre-seed — The earliest institutional money — usually before meaningful revenue, funding the search for product-market fit.
• Accelerator — A fixed-term programme giving a small investment, mentorship and a demo day in exchange for a few percent of equity.

Lessons that explain it

• The funding stages, in order — Friends and family, angels, accelerators, pre-seed, seed, Series A and beyond — what each expects and what each is for. (12 min)
• Who the investors actually are — Angels, VCs, accelerators, family offices, corporate VCs, private equity, venture debt. They want different things — pitch them differently. (12 min)

All 176 terms in the Founder glossary