Elizabeth Keatinge's profile

Who Are Angel Investors?

Elizabeth 'Libby' Keatinge Scheideler graduated from the University of California, Los Angeles and Georgetown University, where she studied English and journalism, respectively. She has worked as a reporter and news anchor for NY1 and FiOS1 News in New York City. A Certified Personal Finance Counselor, Elizabeth Keatinge is also the founder of FundsSavvy.com, which includes a venture capital and angel investors database.

Angel investors are private investors who provide capital for small startups in exchange for ownership equity in the new company. These investors are generally high-net-worth individuals who are looking for promising companies to invest their money in. Because they are early-stage investors, they can generate significantly high returns on investment if the business grows, which are usually higher than those of traditional investment opportunities.

Most angel investors are accredited investors. According to the Securities and Exchange Commission, an accredited investor is an individual who earns more than $200,000 annually or whose net worth (considering all assets) is equal to or more than one million dollars. If the investors are a married couple, their combined income should not be less than $300,000 to qualify for this title.

While angel investors are usually individuals, a significant proportion of them inject money into startups through businesses or an investment fund. An investment fund is created when multiple angel investors pool capital together for the same purpose. In this case, each investor’s shares in the startup will be proportional to how much they invest.
Who Are Angel Investors?
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Who Are Angel Investors?

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