Angel-investor

/ˈeɪndʒəl ɪnˈvɛstər/ noun

Definition

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.

Etymology

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.

Kelly Says

Angel investors are often former entrepreneurs who 'pay it forward'! Unlike VCs investing other people's money, angels risk their own wealth and frequently choose startups based on personal connection to the problem or founder, making them more patient and supportive than purely financial investors.

Ethical Language Guidance

Gender History

Term emerged in 1978 Broadway theater funding context; 'angel' connotations (benevolent, male-coded) reinforced male dominance in early-stage capital. Female founders historically excluded from angel networks, perpetuating male gatekeeping.

Inclusive Usage

Use 'angel investor' without gender assumption; actively acknowledge women angels. Consider 'early-stage investor' as gender-neutral alternative.

Inclusive Alternatives

["early-stage investor","founder-supporter","seed-stage backer"]

Empowerment Note

Women now comprise ~10-15% of angel investors but control disproportionately less capital per investor. Highlight female angel collectives (e.g., Golden Seeds, Female Founders Fund) to counteract historical erasure.

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