A business angel is a person who themselves have set-up their own business in the past and now have the finance and motivation to help other people do the same by them providing some finance backing to help a company that is struggling but has potential in the future but also a new business that wants to start-up.
Business Angels will only invest in a business if they think it will succeed and make a profit this may be over a year or more. They wont only provide finance and time and effort but most also provide information and their know-how on how to make a business successful and other businesses that are in the same quote as them. With all this covered business angles do want a higher rate of return than maybe other kind of investors and stocks and bonds.
Many business angles are from an entrepuncial background and have begun at the bottom and worked there way up and they feel satisfaction and pride in being able to help someone else achieve their goals. But thats not only why they do this but also to make some money for themselves as the business angels can make up to 400% back from their first financial investment as a stock market can only make 9%. There...