Angel funding is an early-stage investment provided by wealthy individuals (angel investors) to startups in exchange for equity or convertible debt. It helps entrepreneurs launch or scale their business when they may not yet qualify for bank loans or venture capital.
Angel investors typically invest in the initial stages of a startup and often provide mentorship, industry connections, and strategic guidance along with financial support. The funding amount usually ranges from small seed investments to several lakhs or crores depending on the startup’s potential.
This type of funding is especially useful for startups working on innovative ideas, technology solutions, or scalable business models. Angel funding allows founders to develop products, build teams, conduct market research, and grow their business before approaching larger investors like venture capital firms.
Angel investors provide capital to startups at the beginning stage in exchange for equity or ownership in the company.
Along with funding, angel investors often offer business guidance, industry experience, and valuable connections to help the startup grow.