An individual who invests their personal capital in early-stage startups, typically at the pre-seed or seed stage.
An angel investor is a person who invests their own money in early-stage companies. Unlike venture capital funds (which manage money on behalf of institutional limited partners), angels deploy personal capital. They typically invest at the pre-seed or seed stage, when companies are too early for most institutional VCs.
Angels often invest $10,000–$250,000 per deal, though some high-net-worth angels invest more. Many angels are former entrepreneurs or executives who bring operational experience alongside their capital. This experience — and the introductions it enables — can be as valuable as the money itself. Angels are often less formal in their diligence process and decision-making than institutional VCs, which can make fundraising from them faster.
To legally accept money from individual investors, your investors typically need to be "accredited investors" under SEC rules — meaning they have a net worth over $1 million (excluding primary residence) or annual income over $200,000 (or $300,000 combined with a spouse). Most early-stage fundraises in the U.S. are structured to comply with Regulation D, which exempts them from SEC registration requirements.