An Angel Investor is an affluent individual who invests in the very early stages of a new startup company i.e. pre-seed or seed stage. An angel investor invests their own money and expects in return either equity positions or convertible notes. The financing that an angel investor provides could be a one-time investment or a series of investments, this makes angel funding perfect for entrepreneurs who are still financially struggling during the startup phase of their business.
There are many advantages of working with angel investors, for example they are willing to take more financial risks and provide advice and guidance to the startup. Angel investors serve as a critical bridge between the startup financing needs of a company and their larger capital needs later on.
Additionally, angel investors are experienced and knowledgeable people, who have had many years of success in running businesses or have had a high profile job. The knowledge that they bring to the startup often boosts the speed of growth and helps the team to learn from experts.
The concept of angel investment has grown over the past decade and it has become a primary mean for many entrepreneurs to fund their startups.
KAPITA is working to establish the first Angel Investors Network in Iraq, which aims to open up greater prospects for young investors and entrepreneurs to expand, invest and support the private sector.
What about you, would you utilize Angel Investment as a mean to fund your startup or next business idea? Or do you aspire to become an Angel Investor in the future?