Angel Financing
Angel financing is early-stage investment from wealthy individuals, or "angels," who provide capital in exchange for equity in startups. This financing is crucial for startups that have a viable product but lack sufficient revenue. Angels often bring strategic value beyond capital, including mentorship and industry connections, and typically invest in companies before institutional investors become involved.
Key Takeaways
- Early-stage investment from individual investors.
- Involves equity exchange for capital.
- Crucial for startups with limited revenue.
- Angels offer mentorship and strategic support.