Angel Investor – They are usually wealthy individuals interested in funding small companies, either start-ups or existing companies interested in growth and expansion. Many of them are entrepreneurs who have raised venture capital in the past and launched their own business to success. Usually small amounts are raised with Angel Investors in the range of $50,000 to $500,000 during a First Round Funding.

Angel Investors can be helpful since many of them are experienced business people who can give valuable advice along the way. If your business is sound they may even provide additional financing or introductions to some of their investor friends.

Most do not want management positions with the company’s they fund and many do not even request to be on the board of directors that they fund. They may be very helpful, however, since they are the type of business people that have been in many situations and know what seems to work and what doesn’t.  They may also have good contacts that they will introduce you too that can be a source of business that translates into increased gross revenues.