Angel Funding Law and Legal Definition

Angel Funding is investment made by an angel investor or angel. Angel investor is also known as a business angel or informal investor. Such investor is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. Angel investments bear extremely high risk and are usually subject to dilution from future investment rounds. As such, they require a very high return on investment. The term "angel" originally comes from Broadway where it was used to describe wealthy individuals who provided money for theatrical productions.