Annual Percentage Yield (APY)
Angel Investors are individuals who provide financial support to early-stage startups or Entrepreneurs, typically in exchange for Equity ownership or convertible debt. They often have personal wealth and may also offer mentorship and Guidance to help the business grow.
Examples:
- In 2018, a tech Entrepreneur received $500,000 from an angel investor to develop a mobile app focused on health tracking.
- A group of Angel Investors pooled together $1 million to fund a sustainable fashion startup aiming to reduce waste in the clothing industry.
Cases:
- In 2016, an angel investor helped fund a new food delivery service, which later expanded and was acquired by a larger company, yielding significant Returns for the investor.
- An angel investor in Silicon Valley backed a seed round for a software company that eventually went public, resulting in substantial Equity gains.