Angel investors

Etymology and origin

Angel investors are often retired entrepreneurs or executives who may be interested in angel investing for reasons that go beyond pure monetary return. These reasons include wanting to keep abreast of current developments in a particular business arena, mentoring another generation of entrepreneurs, and making use of their experience and networks on a less-than-full-time basis. Because innovations tend to be produced by outsiders and founders in startups, rather than existing organizations, angel investors provide (in addition to funds) feedback, advice, and contacts. Because no public exchanges are listing their securities, private companies meet angel investors in several ways, including referrals from the investors' trusted sources and other business contacts, at investor conferences and symposia, and at face-to-face meetings organized by groups of angels where companies pitch directly to investors.