An angel investor is an individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. Angel investors usually give support to start-ups at the initial moments and when most investors are not prepared to back them.
The influx of capital can help an idea develop into a viable company and provide the base to begin producing the product or service proposed.
This private investor not only provides money, but also generally is interested in becoming involved in the project by acting as a guide or mentor.
They invest their time as well as provide connections to their larger network in order to help guide the entrepreneur in the new business venture.