Angel-Investment is the investment made by individuals with their own capital * in start-ups with high growth potential (startups) with the following characteristics:
1. It is made by professionals (entrepreneurs, executives and professionals) experienced that add value to the entrepreneur with her knowledge, experience and network of relationships beyond the financial resources, this is known as smart-money.
2. It usually has a minority stake in the business.
3. Do not have executive position in the company, but support the entrepreneur acting as a mentor / counselor.
The Investor-Angel is usually a (former) businessman / entrepreneur or executive who has trodden a successful career, accumulating enough resources to allocate a portion (usually between 5% to 10% of its assets) to invest in new businesses and how to apply their experience to support the company. Important to note that unlike what many think, the investor-Angel is usually not possess great fortunes, as the angel investment for these would be too small to be administered.