Angel investment is a kind of equity capital investment. It originated on Broadway, New York in 1978 in the United States. It refers to some very rich people, that is, rich people with a lot of net assets, who put a lot of money into some fledgling companies. These companies often have great potential and risk. These rich people tend to see the concept and future impact of these startups. Angel investment is a spontaneous, decentralized and very private investment mode. The funded enterprises are often able to overcome the difficulties in the early stage because of the generous help of these investors. Therefore, in their eyes, these investors are like angels, helping them. Investment angels are very important investors for startups. Their funds can help these companies grow rapidly and develop target businesses.

  For example, you are now a very capable programmer. You have a good idea of software products. You want to get rich through this idea. You think you can start a company. Now you have a problem. If you want to develop your own company, you need a lot of original capital as the foundation for entrepreneurship. At this time, an online rich person saw your ideas and appeals on the forum. He found you and promised you enough money to start a business. After ten years, you are successful and very rich. The rich people who help you earn a lot of wealth because they invested in you. You have achieved a win-win situation.

  Why are there angel investors? Angel investors provide financial support, usually in exchange for equity in startups. Angel investment is usually a participatory investment, value-added investment. These angel investors are experienced and have a lot of industry knowledge. At the same time, they have unique vision and are brave to try. Many angel investors not only provide large amounts of funds for startups, but also use their expertise and experience to provide strategic decisions to help startups get through the early stages. However, there are still some angel investors unable to obtain the expected returns. But they took these situations into consideration at the beginning, and they also knew that this kind of behavior was high risk and high return.

  These people are usually rich and they inject capital into startups in exchange for ownership or convertible debt.

  Basically, angel investors have the idea to fund startups. This was welcomed by cash hungry startups who found angel investors more attractive than other more predatory forms of financing. Angel investors usually use their own funds. Unlike venture capitalists, they are responsible for raising funds from many other investors and placing them in strategically managed funds. Although angel investors usually represent individuals, the entities that actually provide funds may be limited liability companies (LLCs), companies, trusts or investment funds, and many other types of instruments.

  Angel investments have been increasing over the past decades because of the temptation to make them the main source of funding for many startups.

（Writer：Mark）