Angel investors are private individuals who lend money to businesses and non profit organizations. In return for the cash angel investors receive debt notes in the business or a share of the ownership. The debt or ownership is negotiated between angel investors and borrowers. There are no uniform lending requirements among angel investors; these can vary from lender to lender.
Type of Businesses for Angel Investors Funding
Any type of business exhibiting growth potential can receive funding from private or angel investors. Some of the more popular businesses include real estate, restaurants and internet start up companies. According to the Angel Capital Association, Angel investors like to fund start ups or companies in the early development stages. In addition to money, private investors may introduce the borrower to a valuable network of clients. Some of these clients may also be receiving funds from the same angel groups.
