Angel investors a heaven-sent source of capital for early-stage firms

Angel investors, who usually provide capital in exchange taking an equity stake, are increasingly important for start-ups and early-stage businesses.  Barry McCall reports

Angel investors tend to be very patient and understand that they may have to wait some time before they get a return on their investment. Photo: iStock

The main source of finance for start-up ventures has often been referred to as the “three Fs” — friends, family and foolish investors. 

The second most important source tends to be business angel investors. These individuals have become increasingly important as providers of risk capital and contributors to economic growth and technological advances in recent years.