by Ken Lund
An angel investor or angel popularly known as a business angel, informal investor is a wealthy individual who provides capital to start up a business generally in exchange for convertible debt or ownership equity. Quite a few angel investors formulate themselves into an angel group or angel networks to share research and increase their investment capital.
Angel Group, unlike venture capitalists, who manage the pooled money of others in a professionally-managed fund typically, invests their own funds. Reflecting the investment judgment of an individual, the actual entity that provides the funding may be a trust, business, limited liability company, and investment fund, owned by the angel.
Angel group capital fills and capacitates the space and gap in start-up financing between “friends and family humorously given the acronym FFF, which stands for “friends, family and fools providing seed funding, and venture capital.
Although it is quite difficult to find angel investors and raise more than a few hundred thousand dollars from friends and family, most traditional venture capital funds are not able to consider investments under US million.
Thus, ange