Business angel finance

Business angels commonly invest their own funds through equity or convertible arrangements and accept substantial risk. They differ from institutional venture-capital funds, although the two can invest at different stages or together. The investor's sector knowledge and involvement may be valuable, but expectations over control, returns and exit should be clear. Funding availability depends on the opportunity and investor fit, and is not a substitute for a viable business model. The precise rights depend on the investment agreement rather than the label 'angel'.