The term "angel investor" was coined by William Wetzel, founder of the Center for Venture Research and business professor at the University of New Hampshire.
An angel investor invests his/her own money in small startups or entrepreneurs. Angel investors can be sometimes family and friends. It is often assumed that angel investors provide more favorable terms to a startup than others. They invest in startups in exchange for ownership, equity or convertible debts.
An angel investor have to meet the standard of Securities Exchange Commission (SEC) for accredited investors. An angel investor must have annual income of $200,000 and a minimum net worth of $1,000,000.
Angel investors are also know as business angels, seed investors or private investors.
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