Angel financing is a type of investment made by wealthy individuals, known as angel investors, in a startup or early-stage company. Angel investors provide capital in exchange for ownership equity or convertible debt in the company. They typically invest their own personal funds, as opposed to institutional investors who invest on behalf of others.
Angel investors are often entrepreneurs or industry professionals themselves who have experience and knowledge that they can share with the startups they invest in. They also often provide mentorship and guidance to the management team and may also assist in networking and business development.
Angel financing can be an attractive option for startups because it provides capital without the need to give up control of the company or the need to go through the lengthy and complex process of going public. However, it can also come with a higher level of risk than other forms of financing because angel investors are investing their own personal funds.