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Angel Investor Definition and How It Works

Today, we will talk about the definition and workings of angel investors. An angel investor provides initial seed money for startup businesses in exchange for ownership equity. They are not usually in the loan business and their involvement represents no more than 10% of their portfolio. Angel investing may be the primary source of funding for an entrepreneur who finds it more appealing than other forms of financing like bank loans. It is risky business for the angel investor, and they may be hands-off or get deeply involved in the early stages. b05d