What type of investors are often referred to as 'angels'?

The term 'angels' in the context of investment typically refers to private investors who provide capital to startups and early-stage businesses. These individuals often invest their own personal funds, which distinguishes them from institutional investors or venture capital firms that manage pooled investment funds from various sources. Angel investors not only contribute financially but often bring valuable mentorship and industry connections to the startups they support, which can significantly enhance the chances of success for these new ventures.

This understanding highlights the unique role that angel investors play in the early stages of business development, providing crucial support that is not always available from other sources of funding. This type of investment is critical for entrepreneurs seeking to launch and grow their businesses before they can attract larger investments from venture capital or community funds.