A business angel invests time, money, and resources in an early-stage project to help get it off the ground in cooperation with its founder(s). Everyone looking to invest, even smaller amounts, can become an angel investor.

Being an angel investor usually targets better returns than traditional mainstream investment. It provides you with the opportunity to diversify your portfolio and a potential higher rate of return on the investment made.

Investing in a start-up is considered to be high risk. You could lose your money, but there is also a potential higher payoff. It is important to spread risk when investing in startups, and never invest more than you can afford to loose.

A business angel typically does not hold a formal role in the company, though there are exceptions where some will join the board or even serve as a de-facto co-founder if skills and needs align. Some angels are very active in the company, and some are passive.

You can be a business angel if you invest even small amounts in a startup. Sometimes, your experience and network is more valuable than your investment. Typical angel investments vary from 1 000 EUR to 100 000 EUR or more, and angels often invest together.