ABSTRACT
Angel investors (or simply angels) are affluent investors (typically accredited) who provide capital for startups early in the development process, usually in exchange for an equity stake. While it is unusual for a venture capital firm to invest under $1 or $2 million, the majority of angel investments will fall under this level-providing a company with a source of funds to further develop the product and grow the company, without necessitating a $5 million outside investment. Nationwide, institutional venture capital firms typically make only between 2500 and 3500 investments annually. While firms may invest in industries outside of green or high technology fields, it is still typical that a firm will focus its investments into certain fields, industries, or technologies. While some startup companies seek equity financing instead of debt financing, entrepreneurs may still find it helpful to consider the various bank loans available.
