Browse Definitions :
Definition

angel investor

Contributor(s): Ivy Wigmore

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

Continue Reading About angel investor

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

SearchCompliance

  • compliance audit

    A compliance audit is a comprehensive review of an organization's adherence to regulatory guidelines.

  • regulatory compliance

    Regulatory compliance is an organization's adherence to laws, regulations, guidelines and specifications relevant to its business...

  • Whistleblower Protection Act

    The Whistleblower Protection Act of 1989 is a law that protects federal government employees in the United States from ...

SearchSecurity

  • Transport Layer Security (TLS)

    Transport Layer Security (TLS) is a protocol that provides authentication, privacy, and data integrity between two communicating ...

  • van Eck phreaking

    Van Eck phreaking is a form of electronic eavesdropping that reverse engineers the electromagnetic fields (EM fields) produced by...

  • zero-trust model (zero trust network)

    The zero trust model is a security model used by IT professionals that requires strict identity and device verification ...

SearchHealthIT

SearchDisasterRecovery

  • cloud insurance

    Cloud insurance is any type of financial or data protection obtained by a cloud service provider. 

  • business continuity software

    Business continuity software is an application or suite designed to make business continuity planning/business continuity ...

  • business continuity policy

    Business continuity policy is the set of standards and guidelines an organization enforces to ensure resilience and proper risk ...

SearchStorage

  • solid-state storage

    Solid-state storage (SSS) is a type of computer storage media made from silicon microchips. SSS stores data electronically ...

  • persistent storage

    Persistent storage is any data storage device that retains data after power to that device is shut off. It is also sometimes ...

  • computational storage

    Computational storage is an information technology (IT) architecture in which data is processed at the storage device level to ...

Close