Angel Investor
An individual who invests their own money in startups, usually at the earliest stages.
Definition
Angel investors are typically high-net-worth individuals who invest $5K-$250K in early-stage startups in exchange for equity or convertible notes. Unlike VCs, angels invest their personal funds and often bring industry expertise, connections, and mentorship. Angel investments carry high risk but offer potential for outsized returns.
Why it matters for founders
Angels are often the first outside money a startup raises. They're more willing to invest based on the team and idea alone, without requiring revenue or traction that VCs demand.
Example
A former SaaS executive invests $50K in a pre-seed startup building a new CRM, introduces the founders to their network, and advises on enterprise sales strategy.
How Foundra helps
Foundra helps you prepare for angel conversations by generating structured deliverables (Idea Snapshot, Target Customer, Founder Advantage) that demonstrate clear thinking and reduce investor risk.
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Related terms
Pre-Seed Funding
The earliest stage of startup funding, typically from personal savings, friends and family, or angel investors.
Seed Round
The first significant round of venture funding, typically $500K-$5M.
Pitch Deck
A presentation (usually 10-15 slides) that tells your startup story to potential investors.