Angel Investor

Definition

A wealthy individual who gives money to startups in exchange for equity and the warm feeling of watching their investment evaporate. They're called angels because they appear from heaven with cash and then watch helplessly as you fly straight into the ground.

Example Usage

"Our angel investor gave us $100K and a lot of advice we didn't ask for, which is the rich person equivalent of giving a teenager a car and a lecture."

Related Terms

Intermediate

deployment pace

The speed at which a VC fund invests its committed capital. Deploy too fast and you look desperate; too slow and your LPs wonder if you can actually find deals.

🚀 Startup / VC

Advanced

distribution waterfall

The specific order in which investment proceeds are distributed among LPs and GPs based on the fund's legal agreements. It's the pecking order that determines who eats first at the exit feast.

🚀 Startup / VC

Advanced

qualified small business stock

IRS tax designation (Section 1202) that can exclude up to $10 million in gains from federal taxes for early startup investors, assuming you navigate the Byzantine requirements. The tax break that makes angel investing slightly less insane.

🚀 Startup / VC

Intermediate

scout program

A system where VCs give small pools of capital to well-connected individuals to make investments on the firm's behalf. A brilliant way to outsource deal flow while paying in equity instead of salary.

🚀 Startup / VC

Advanced

vulture capital

Investors who prey on distressed startups, offering unfavorable terms when founders are desperate. They prefer the smell of burning runway in the morning.

🚀 Startup / VC

Advanced

Cap Table

A spreadsheet that tracks who owns what percentage of a company, growing increasingly depressing with each funding round as the founders' share shrinks like a wool sweater in a dryer. It's the scoreboard of startup capitalism.

🚀 Startup / VC

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