What is an Angel Investor, and why do They Invest Angel investors look for opportunities to grow their own business involvement by attaching themselves to new and/or growing businesses. They are a growing section of investors these days partly due to the fact that starting a technology company …show more content…
Angel investors might belong to a group of other angels in an attempt to pool their resources, and are mainly interested in start up businesses (Funds and financial, n.d.). One difference might just be where the business is at to draw attention from an angel investor as opposed to the venture capitalist. The venture capitalist could be more interested in where the company is at developmentally, and have studied the business model before they will invest (Funds and financial, n.d.). The venture capitalist might be willing to invest, but not without doing their homework. The venture capitalist could be willing to invest more money than the angel investor, but they will be using other peoples money where the angel investor will typically be using their own (Bell, 2007). It stands to reason then that the angel could afford to be a gambler, where the venture capitalist could