An individual who invests personal funds into early-stage startups—usually in exchange for equity—often providing mentorship alongside capital.
What is an Angel Investor?
An Angel Investor is a high-net-worth individual who invests their own money into early-stage or startup businesses, typically in exchange for equity or convertible debt. These investors usually come in during the pre-seed or seed stage, before institutional venture capital (VC) firms get involved. For non-U.S. founders building a U.S. company, angel investors are often one of the first sources of external funding and can play a crucial role in helping the business grow.
Angel investors tend to be entrepreneurs, executives, or professionals with industry experience. In addition to funding, they may offer advisory support, industry connections, or credibility that helps a startup attract more investors. The amount invested by an angel can vary widely—anywhere from a few thousand to several hundred thousand dollars. Angels often invest individually or as part of angel networks, which allow multiple investors to co-invest in promising startups.
Because angels are investing their personal funds, their decisions may be based not only on financial returns but also on belief in the founder, the mission of the company, or alignment with personal interests. In most cases, they do not take a controlling stake, but they may negotiate preferred shares, pro-rata rights, or advisory roles as part of the deal.
To legally invest in U.S. startups, angel investors typically must meet the U.S. Securities and Exchange Commission (SEC) definition of an “accredited investor,” which means meeting certain income or net worth thresholds. However, this requirement applies more to the startup offering the securities than to the investor themselves.
In summary, an angel investor is often the first believer in a new venture, offering capital and guidance in the earliest, most uncertain stages of the business. For international founders, connecting with U.S.-based angel investors can open doors not only to funding, but also to the local startup ecosystem, legal resources, and early traction in the U.S. market.
