We all have a vision in our heads of an angel – the being that came to bring messages of good news and great joy in the nativity story – or the little girl dressed in white with her fluffy halo on her head in the school play. But how does that work in a business context? What is a business angel?
“An angel investor is a high net worth individual who makes use of their personal disposable finance and makes their own decision about making the investment.” UK Business Angels Association
A business angel is someone (or a group of people) who decides to invest their money in other businesses. It is described as equity finance, as the angel would usually take shares in your company in return for the finance they are providing. In contrast to other forms of lending, angels will usually wish to volunteer their expertise as well as their money, helping you to achieve your objectives and them to achieve a return on their investment. One of the most famous groups of angel investors is of course the BBC Show Dragon’s Den.
