Angel Investors

Angel investors are people who provide money to new or early-stage businesses when they are just starting out. These startups usually cannot get loans from banks or funding from big investors, so angel investors help them grow.

In return, angel investors get:

Equity (ownership in the company)

Or convertible debt (which can later turn into shares)

They usually invest at a very early stage, where:

Risk is high (many startups may fail)

But potential returns are also high if the company succeeds

Apart from money, angel investors often help startups by:

Giving guidance and mentorship

Sharing business experience

Providing useful contacts and networks

Example:

Imagine a startup with a new app idea but no funds to build it. An angel investor gives ₹10 lakh to support the business in exchange for a small ownership stake. If the startup grows successfully, the value of that investment can increase significantly.