This is what a sting investor does

An angel investor is a wealthy person who invests capital in a (start-up) business.

An angel investor is the same as a business angel or informal investor. It is a wealthy person who invests capital in a (start-up) business.

In return, he or she receives shares and/or control, which as an entrepreneur you should definitely be alert to. Let's get straight to the pros and cons of business angel financing.

Advantages angel investor

They have a background as an entrepreneur
Can turn quickly and make decisions
Easy access to investor network
Access to coaching / management skills
No collateral needed

Disadvantages angel investor

Relatively low investment amounts
The investor has control
Often wants shares in exchange for funding

See a complete overview of the characteristics of an angel investor here.

Written by

Wietze Willem Mulder, Brookz

Wietze Willem Mulder is Manager of Content at Brookz. He studied journalism and has written for business titles such as FEM Business, Sprout, De Ondernemer and Management Team. He is also co-author of the handbooks How to buy a business and How to sell a business.