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Business angels are wealthy individuals, often self-made or with considerable business background and industry expertise, who allocate some of their resources to invest seed money and knowledge in new ventures.
During a company’s seed phase, business angels are often the only source of external financing for a project. For first-time entrepreneurs and young companies, it is almost always easier to raise money from angels than from traditional venture capital firms. This start-up support provides the entrepreneur with enough capital to fund initial product development and sales so that the company can later raise additional capital through other sources.
Often, business angels can also act as mentors by tapping into an extensive, world-wide network to help find customers and other business partners for an investment project.
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