Angel Investors can be friends, family, co-workers and more. The amounts invested range from a few thousand dollars to $100,000. There are no official guidelines on the investment amounts and some Angels invest as much as $250,000 or more in a single venture. Today, "Angel" refers to anyone who invests his or her own money in an entrepreneurial venture, unlike institutional Venture Capitalists, who invest other people's money.
Contrary to popular belief, most Angels are not millionaires. Typically, they earn from $80,000 to $125,000 a year, which means there is likely an abundance of them right in your own backyard. Angels come in two varieties: those you know and those you don't know. They may include professionals such as doctors and lawyers, business associates such as executives, suppliers and customers, even other entrepreneurs.
Unlike Venture Capitalists and bankers, many Angels are not motivated solely by profit, particularly if the Angel is a current or former entrepreneur. He or she may be motivated more by the pure enjoyment of helping a young business succeed rather than by the money they stand to gain in the opportunity.
Angels are more likely than Venture Capitalists to be persuaded by an entrepreneur's drive to succeed, his/her persistence and their mental discipline. Angel Investors vary widely, but are typically willing to accept risk and demand little or no control of the venture in return for the chance to own a piece of a business that may be valuable someday.