What Is Meant By Angel Investors?

An angel investor is also known as business angel. These investors are private individual who offers capital for a private company establishment and generally want less control of the company. Angel invertors normally invest their own money and are great source of private capital. This capital is generally presented usually in exchange for ownership equity in the form of stock or instruments exchangeable into shares.  

Angle Investors seek for companies that have a high potential of growth and can compete in an industry. The angle investor is generally near 47 years old and should have an annual income of $90,000. Most invertors invest in a company which is easily accessible to them or near their home.

An angel investor is wealthy investor their investments are extremely at high risk and therefore have a high return. Angel investors are mostly retired executives and they can give helpful management suggestion and significant links. They invest in companies which have no revenues. To effectively utilize angel investors a company should provide an exit to these investors in the form of public offering.

TYPES OF ANGEL INVESTORS:-
Angel investors can be classified into five basic groups:

CORPORATE ANGELS:
Typically so- called corporate angels are senior managers at fortune 1000 corporations who have been laid off with generous severances or have taken early retirement.

Entrepreneurial Angels:
The most prevalent type of investors, most of these individuals own and operate highly successful business.

Enthusiast Angels:
Whereas entrepreneurial angels tend to be somewhat calculating, enthusiasts simply like to be involved in deals.

Micromanagement Angels:
Micro managers are very serious investors. Some of them were born wealthy, but the vast majority attained wealth through their own efforts. Unfortunately, this heritage makes them dangerous. Because most have successfully built a company, micro managers tend to impose the tactics that worked for them on their portfolio companies.

Professional Angels;
The term "professional" in this context refers to the investor's occupation such as doctor , lawyer and in some very rare instances, accountant. Professional angels like to invest in companies that offer a
    product or service with which they have some experience.
They rarely seek a broad seat but they can be unpleasant to deal with when the going gets rough and may believe that the company is in trouble before it actually is.