Angel Investor

Definition

Definition An angel investor is an individual who invests their own money into startups—typically at the pre-seed or seed stage. Angels may invest independently or alongside other investors and often provide support through introductions, mentorship, or industry credibility. Context Angel investing is often relationship-driven and can be based on founder trust, sector knowledge, or network access. Angels may invest through priced equity rounds, SAFEs, or other early-stage instruments. Because early-stage information is limited, angel decisions frequently rely on judgment about founders, market dynamics, and early traction signals. Allocator and Family Office Relevance Family offices can participate in angel activity directly (principal-led checks) or indirectly through family members, advisors, or structured vehicles. Angels often act as early gatekeepers of opportunity flow: families that want access to high-quality pre-institutional deals frequently build relationships with strong angel networks. Decision Authority and Process Considerations Angel-style checks are usually approved at the principal level or delegated within a venture sleeve. Clear concentration rules matter because many small checks can unintentionally create exposure concentration if focused in one theme or founder network. Key Takeaways Angels invest personal capital at the earliest stages Decisions are often founder- and network-driven Angels can be a source of high-quality early deal flow Risk is high; discipline and concentration control matter