Explanation

Angel investors are wealthy individuals having spare resources and invest in emerging or growing firms to provide them large capital as well as earn higher returns.
Angel investors have to assume higher risks as the business has more chances of failure in the initial years. However, they review the business plan, its strategies, long term and short term goals before making investments to ensure their annual returns.

Verified Answer

An angel investor is a person who provides capital to a business in its initial stages through investing in ownership equity of the firm.