An angel investor contributes funds to a startup firm in its early phases of growth. Unlike venture capitalists, who are usually tied to a professional venture capital business and invest a pooled money, angel investors are people who take risks on their own and fund a project they believe in.
Angel investors are frequently compensated with shares in a startup in exchange for their support. If the enterprise succeeds, angel investors will be able to recoup their investment and more.
Many new blockchain startups are supported by angel investors who are typically identified through investment and entrepreneurial networks in the crypto industry.