What is the role of angel investors in startups?

What is the role of angel investors in startups?

Angel investors provide early-stage funding to startups, often in exchange for equity. They also offer mentorship.

How do they differ from venture capitalists?

Angel investors typically invest their own money and focus on early-stage companies, while venture capitalists manage pooled funds and invest in later stages.

What are the benefits of having an angel investor?

Benefits include access to capital, mentorship, networking opportunities, and increased credibility for the startup.

Are there any risks involved with angel investing?

Yes, risks include the potential for loss of investment, lack of control over the startup, and the possibility of conflicts with founders.

How can a startup attract angel investors?

Startups can attract angel investors by having a solid business plan, demonstrating market potential, and showcasing a strong team.