A person who financially backs a new business venture or startup.
An angel investor is an individual who provides capital for an early-stage project or company, usually in exchange for equity. Angel investors are typically high-net-worth individuals with a keen interest in the potential of the crypto market and are comfortable taking risks with their capital. They may also offer mentorship or advice to help the business grow. Unlike venture capitalists, who are typically bound to a professional venture capital firm and invest a pooled sum, angel investors are lone individuals taking their own risks and financing a vision they support.
In the crypto world, plenty of new blockchain companies are financed via angel investors, who are often scouted via investment and entrepreneurial networks.
High Risk: Angel investors typically invest in early-stage companies, meaning they are at a higher risk of failure. This means that the investor may not be able to recoup their investment if the company does not perform as expected.