Who is an Angel Investor?

Case breakdown: Movie Jobs

The scene that you just saw from the movie shows how the investor Mike Markkula (first investor) of apple is ready to invest in the company. He doesn’t negotiate with Steve Jobs either. He believes in the company’s vision and knew it would do well in the future. Hence, he decides to invest in the company. Markkula was a financial expert who later took care of the finances of the company.

Steve Jobs (played by Ashton Kutcher) very tactfully asks Markulla, for a loan of 2,50,000 @10% (besides $90, 000 investment) interest rate which will be paid in full once the company meets positive net revenue.

Who is an Angel Investor?

Angel investors are wealthy investors who are looking to invest in companies they think are viable and would earn a return in the future. They are also called seed investor or private investors. They are generally high-net-worth individuals. This investment can be a one-time investment to help businesses get off the ground or it could be an ongoing investment.. 

These types of investments are considered to be risky as the investor is at risk of losing his/her investment completely. Angel investors help start-ups begin their business journeys’. Many angel investors are nowadays investing through equity crowdfunding.

For example, angel investor in India for Ola cabs and Shaadi.com was Anupam Mittal.

Understand with youtube video: