Bootstrapping vs Venture Capital: How to Decide
A side-by-side look at bootstrapping and venture capital, covering control, growth expectations, dilution and which business models actually fit VC, plus a simple decision framework.
Business & Retail Tech
What is Angel Investor?
Quick answer
An individual who invests personal money in an early-stage startup, usually in exchange for equity or convertible notes.
Angel Investor, explained
Angel investors typically back companies at the idea or pre-seed stage, before institutional venture capital firms are willing to commit. Many angels are former founders or executives who also offer advice, introductions, and credibility alongside their cheque.
Angel deals are often structured as equity, convertible notes, or SAFEs (Simple Agreements for Future Equity), which convert into shares at a later funding round. Because most early-stage startups fail, angels usually spread their money across many companies, hoping a few succeed. Groups of angels sometimes pool resources in angel networks or syndicates to share due diligence and invest larger amounts. For founders, a good angel can be as valuable for guidance as for capital.
Related terms
Term Sheet
A non-binding document that outlines the key terms and conditions of a proposed investment in a startup.
Venture CapitalInvestment from specialized firms into high-growth startups in exchange for equity, with the aim of large returns when companies succeed.
Guides that mention Angel Investor
What Is a SAFE Note? Valuation Caps, Discounts and Conversion Explained
How a SAFE note works, what valuation caps and discounts do, how a SAFE converts into shares at your first priced round, with a worked example and the pitfalls founders miss.