Angel Investing
Angel investing is the practice of providing capital to early-stage startups or entrepreneurs in exchange for equity ownership, typically by high-net-worth individuals (angel investors) who offer funding, mentorship, and industry connections. It involves evaluating business ideas, assessing risks, and supporting growth before companies seek larger venture capital or public funding. This process helps bridge the funding gap between initial seed money and later investment rounds.
Developers should learn about angel investing to understand startup financing, which is crucial if they work in or plan to launch tech startups, as it provides insights into funding cycles, valuation, and investor expectations. It's also valuable for those in entrepreneurial roles or seeking to diversify their income through high-risk, high-reward investments in innovative technologies. Knowledge of angel investing enhances business acumen and can lead to networking opportunities in the startup ecosystem.