Angel Investors

Angel investors, like VC firms, are primarily high net worth individuals that possess expertise or interest in a specific industry, vertical, or technology. Unlike VC firms, however, angel investors operate as individuals. In some cases angel investors may combine their investing efforts through an angel group.

Angel investors operate in a very different manner than VC firms, preferring to take a hands-on approach to the operation and growth of the startups they invest in. Working with an angel investor can provide early stage startups with critical business connections, skills, expertise, and knowledge that propels their business toward success.

One drawback of angel investors is the frequency at which they invest in the startup ecosystem — angel investors are unlikely to direct capital towards new startups during a tight economy.

Angel investors are, however, much faster than traditional VC funding. Securing seed startup funding through angel investors is typically a faster process than capturing funding through VC firms due to the close relationships established between angel investors and startup founders.