Angel investor

Angel investors are private individuals, often former founders or executives, who invest their own funds into young companies that are too small or too unproven for institutional firms. Checks usually range from a few thousand dollars up to a few hundred thousand, sometimes pooled with other angels into a group or syndicate. In return the angel receives equity, and many also offer mentoring, introductions, and advice drawn from their own operating experience. Deals are often structured as a priced equity round or through a convertible instrument that turns into shares later.

This route fits founders who have a product or early traction but cannot qualify for a bank loan and do not yet need the scale of venture capital. The main trade off is ownership. You give up a piece of the company and, often, a voice in how it is run. Angel money also tends to be patient but finite, so it works best as a bridge to revenue or a larger round rather than a long term funding plan. Founders who want to keep full control may prefer debt or bootstrapping instead.