Angel investor is the term given to individual investors who provide capital for small businesses or start-ups, most often in exchange for a slice of equity in the business.

1. Ahmed Dahab
Business
ANGEL INVESTORS
Understanding

2. Ahmed Dahab
ANGEL INVESTORS
UNDERSTANDING
Angelinvestoristhetermgiventoindividualinvestors
who provide capital for small businesses or start-ups,
most often in exchange for a slice of equity in the
business. These types of investors are high net worth
individualswhoarefocusedonhelpingentrepreneurs
get new businesses off the ground.

3. Ahmed Dahab
Some angel investors utilise
crowdfunding to be able to be
part of larger investments.
Investment Risk
As angel investors are typical-
ly placing their money with
companies that do not yet
have a proven track record,
these types of investment
are high-risk. Most angel in-
vestors will dedicate no more
than 10% of their investment
portfolio to these types of in-
vestment. The risk is offset
by the potential to receive far
higher returns than for other
types of investment should
the start-up succeed.
Funding Innovation
The capital provided by angel
investors for new start-ups of-
tenfundsinnovationthatmay
otherwise be left untapped,
therefore fostering econom-
ic growth. Angel investors
are typically more interested
in assisting their investment
companies with getting off
the ground, rather than mak-
ing a quick profit.
Some angel investors utilise
crowdfunding to be able to
be part of larger investments.

4. You can read more about
the various funding
options available to
smaller businesses
by visiting the blog of
Ahmed Dahab.