Angel Investor

Angel investor is a person who invests in startups in the initial stages of their development in exchange for share and control. Angel investors usually take part in the Board of directors’ operation, have voting rights, and can influence the decision-making process — that’s why angel investors are the founders’ closest business partners. They ultimately aim to gain profit from startups’ growth during the exit after some time.

This kind of investor risks highly because companies they invest in are small and their ambitions and hypotheses are yet untested. That’s why angel investors usually have a diversified portfolio of investments to increase the probability of success cases.