Angel investors are investors that have capital for investments and are investing in young companies that are in start-up stage and are needed for capital to exploit growth potential. The source of funding from angel investors is similar to venture capital but venture capital usually is corporate business and they may choose larger projects to invest when angel investors usually are private investors.
It would not be a mistake to call angel investors as small business investors because they mostly are investing in small businesses or business projects. The investment risk of angel investments is very high and it is normal that such investors are expecting very high return on investment. So, every business owner that is trying to find investors should consider this very seriously before taking capital from angel investors because they may overtake their business very quickly and such type of business investors should be the last source for funding and only if business idea is really that much promising.
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