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This group of people comprise of wealthy, accredited individuals (as defined by the SEC- see “accredited investor”) who provide necessary funding to business owners. While they are known to finance companies in its “seed” stage, many angel investors are now investing in later-stage enterprises. They are not related to nor are friends with their invested company’s founders. Angel investors usually invest in businesses that need anywhere from a few thousand dollars to up to $1 million or more, depending on the investor.

 

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