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Entrepreneurship & Startups vocabulary · Fundraising & Investors

Angel investor

Meaning in entrepreneurship & startups, with examples

/ˈeɪndʒəl ɪnˈvestər/nounCore term

In entrepreneurship & startups, angel investor means: A wealthy individual who invests their own money in very young startups, usually in exchange for equity, and often gives advice and contacts as well.

In Turkish: melek yatırımcı, bireysel yatırımcı

How it is used

Angels often write the first cheques after friends and family. People say angel, angel round and angel network (a group of angels who invest together). Many angels are former founders or executives. A typical phrase is we raised an angel round.

Example sentences

  1. Two angel investors put in 150,000 dollars before we had any revenue.

  2. Our first angel investor was a former CTO who also helped us hire engineers.

Common collocations

  • angel round
  • angel network
  • business angel
  • raise money from angels
  • investorA person or organisation that puts money into a company in exchange for a share of it or a future return, hoping the company will grow in value.
  • seed roundOne of the first official funding rounds of a startup, used to build the product, hire the first team and look for product-market fit.
  • venture capitalMoney that professional funds invest in young, fast-growing companies in exchange for equity, accepting high risk in the hope that a few big winners pay for the losses.
  • convertible noteA short-term loan from investors that turns into company shares at a later funding round, usually at a discount, instead of being paid back in cash.
  • SAFESimple agreement for future equity: a contract in which an investor gives money now and receives shares later, usually at the next priced funding round.

More terms: Fundraising & Investors

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