Part of the Project management glossary:

An angel investor, sometimes just referred to as an angel, is an individual who invests private funds in a company or product for personal reasons. The term is sometimes contrasted with venture capital investors, who provide seed capital for similar things from corporate or partnership funds, with financial gain the main motive. 

Motivations for angel investors include interest in a particular area or a belief in the product, as well as more personal reasons. For example, an individual with a disabled child might be motivated to invest in technologies that support accessibility. 

Angel was first used in this sense in the early 1900s, to refer to prominent businessmen who backed Broadway shows. The businessman was motivated by the prestige associated with involvement in an artistic venture, in addition to the potential financial gains from successful shows. Modern use of the term in this sense originated in a 1978 study by William Wetzel, a professor at the University of New Hampshire, on how entrepreneurs raised seed capital. 

Groups of angels sometimes organize as an angel network for more effective investing.

This was last updated in June 2013
Contributor(s): Ivy Wigmore
Posted by: Margaret Rouse

Related Terms

Definitions

  • micromanagement

    - Micromanagement is an approach to overseeing staff that is characterized by a need to control the actions of employees beyond what is useful or effective. (WhatIs.com)

  • third party

    - A third party is an entity that is involved in some way in an interaction that is primarily between two other entities. The third party may or may not be officially a part of the transaction betwee... (WhatIs.com)

  • use case diagram

    - A use case diagram is a graphic depiction of the interactions among the elements of a system. A use case is a methodology used in system analysis to identify, clarify, and organize system requireme... (WhatIs.com)

Glossaries

  • Project management

    - Terms related to project management, including definitions about project management methodologies and tools.

  • Internet applications

    - This WhatIs.com glossary contains terms related to Internet applications, including definitions about Software as a Service (SaaS) delivery models and words and phrases about web sites, e-commerce ...

Ask a Question About angel investorPowered by ITKnowledgeExchange.com

Get answers from your peers on your most technical challenges

Tech TalkComment

Share
Comments

    Results

    Contribute to the conversation

    All fields are required. Comments will appear at the bottom of the article.