Who are angel investors?

Angel investors are individuals who provide capital for startups, typically in exchange for convertible debt or ownership equity. They often invest their personal funds and are usually among the first investors in a new company. The role of an angel investor is crucial, especially for early-stage businesses that may not yet have access to traditional forms of financing, such as bank loans or venture capital.

Angel investors not only provide necessary funding but often also offer mentorship, advice, and an invaluable network of contacts, leveraging their experience and status as successful entrepreneurs or professionals. Their willingness to take risks on young companies is critical in helping innovative ideas develop into viable businesses.

The other options describe different types of investors but do not fit the specific definition of angel investors. Government officials, institutional investors, and venture capitalists focus on larger investments and more established companies, whereas angel investors directly engage with startups, bringing not just money but also expertise and personal commitment to nurturing fledgling businesses.