What Is An Angel Investor? This Is Understanding And Origin Of Its Existence

Illustration of angel investors (Unsplash)

YOGYAKARYA Did you know that in the business world, the term angel investor is known? This term refers to investors who are ready to finance a business. To understand further, the following article will provide an overview for you.

The term angel investor comes from English which if roughly translated means angel investors.

Quoted from Forbes, angle investors are individual investors who offer funding to startup businesses that have great prospects. In disbursing their funds, an angel investor usually asks for compensation in the form of equity ownership or royalties. Usually, angel investors don't come from large accredited companies, but come from people closest to business people, they can be relatives or friends of the entrepreneur.

Angel investors are different from venture capital. The reason is, angel investors will usually invest in a company in the form of funds once just to go through the company's difficult times. The purpose of the investor angel is also various, it can only be to develop startups in the early period or maybe when the new business is in the form of ideas. Sometimes when angel investors are not purely after profit.

As previously stated, angel investors usually do not come from accredited large groups. The origin of angel investors usually comes from various backgrounds, namely as follows.

Close people can be relatives, friends, or friends. They better understand the condition of entrepreneurs who are pioneering rather than accredited finance companies. Therefore, financing usually arises from them.

Angel investors can also come from rich people who have enormous assets. They usually take an interest in small companies. Usually, entrepreneurs encounter this type of investor from various streets ranging from seminars to social media.

There are also angel investors who are members of a community. They will look for small entrepreneurs to get certain funding. However, entrepreneurs must remain professional in running their business.

That's information about what an investor is. Visit VOI.ID to get other interesting information.