A business angel is an individual investor who fronts money to a young business in order for it to begin or grow operations. The investor takes on this risk if the potential payout is higher than it would be somewhere else and usually requires some kind of collateral such as partial ownership of the business. It is an attractive option for entrepreneurs because unlike debt, the money doesn't have to be paid back if the business goes under making it similar to a public stock offering.
Like This Answer? (0) (0)
This answer is the subjective opinion of the writer and not of FinancialAdvisory.com