Angel – n: typically a high-net-worth individual (wealthy individual or family) who invests in one or more early-stage startup companies; angels (a.k.a. angel investors) typically make equity (stock) investments, although variations occur. An angel can be thought of as an individual who makes very early-stage venture capital investments, often before the business has developed to the point at which institutional venture capital investors are interested in investing. Because of the extraordinary risk associated with such early-stage investments, angels will usually look for a low valuation – that is, a large ownership share given the amount of their investment.  (See also accredited investor.)

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Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
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