What's An "Angel" Investor?

"Angel" Investors are a good source for start-up capital.

Raising start-up capital may require giving up a portion of yourbusiness to private investors, called "angels." Suchmoney is called equity capital. Equity financing means dividingyour business ownership among investors who contribute capital butmay or may not participate in the operation of the business. Therearen't any loans associated with equity capital, and thereisn't any legal obligation placed on you to pay back the amountinvested. All the investor gets is a percentage of the business,and the losses or profits associated with it.

Excerpted from Starting a Home-Based Business

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