Angel investors are usually wealthy individuals that invest in a small start-up or entrepreneur. Often, angel investor is found amongst an entrepreneur's family or friends and they offer more encouraging terms when compared to other investors.
A fund offered by an angel investor may be a one-time investment with an aim to help a start-up propel. Also, angel investors’ fund could be a continuous injection of money to support and lift the business through its rough early stages.
In some cases, other terms are used for angel investors like; informal investors, angel funders, private investors, seed investors or business angels.
Angel investors normally use their private money, unlike venture capitalists who manage joint capital from many other investors and put them in a strategically managed fund.