Angel capital is money invested in a business to provide equity capital, not debt which must be repaid regardless of the success of the business. More often than not angel investments are combination of funds and the business expertise of the investor(s). Angel investment transactions are made with the expectation of a very large financial return to the investor per dollar invested if the business succeeds. Angel investments are also made with the expectation of psychological rewards for the investors. These are obtained from their personal contributions to the growth of the business, time and business expertise. The investment decision is thus both financial and personal. Risk and reward take a more complex form than in almost any other financial transaction. It is risk and rewards. Because of the high expected financial return, angel investment is only a realistic source of equity for the two or three percent of small firms which demonstrate a potential for profitable and rapid growth. Of these high growth rate firms, only five to six percent actually can present investors with plausible sales forecasts showing projected profitable annual sales of a hundred million dollars within [ - ]

Angel capital is money invested in a business to provide equity capital, not debt which must be... [ + ]