Overview of Angel Investing

Indeed, inadequate finance or lack of access to finance has the potential to exclude many future entrepreneurs of limited means if they do not already have personal wealth or other means of financing. Start-ups in their early stages may bump into various obstacles, including the financial gap, called ‘valley of death’, which limits their ability to innovate and to scale their business. At this stage, another set of investors who are also considered part of private equity ecosystem, known as angel investors, come into the picture. Angel investors help the firms survive this valley of death by providing capital and mentoring the entrepreneurs to help them succeed.