Angel investing refers to investments in startup companies or in entrepreneurs themselves. Entrepreneurs and companies often use the investments to scale the business or to further develop their specific product or service. Revenue generation is not necessarily a requirement from angel investors as long as there is proof-of-concept from the capital-seeking company. Typically these investments come from accredited investors in exchange for some form of ownership stake. The potential for a significant return also comes with a higher degree of risk.
Angel investing can occur through participation in angel groups as well as through online angel investing.