An angel investor is an individual who offers capital to early-stage projects or companies, typically in exchange for equity. These investors are usually high-net-worth individuals who see potential in the crypto market and are willing to take on the associated risks.
In the crypto space, many new blockchain companies are funded by angel investors, often identified through investment and entrepreneurial networks.
Given the high risks, some angel investors also offer mentoring and business advice to increase the chances of the venture’s success, enhancing their likelihood of profiting or at least recovering their investment. This support can range from planning to development, including networking, marketing, and advertising assistance.
In the blockchain industry, angel investors frequently participate in private sales that occur before public or crowd sales, commonly known as Initial Coin Offerings (ICOs).
