A wealthy individual who provides capital to startup companies in exchange for equity ownership, typically investing their own money in the earliest stages before venture capital involvement. Angels often provide mentorship and industry connections alongside funding.
Term originated in early 1900s Broadway theater, where wealthy patrons would 'angel' productions by providing funding. It migrated to startup investing in the 1970s, emphasizing these investors as saviors who rescue promising companies when they need capital most.
Try Another Word