An angel investor is typically a successful businessman / businesswoman who provides capital to a startup or existing business and expects a percentage of equity, usually a minority shareholding, in return. Angel investing is a common business practice in the US and Europe.

There are many types of angel investors with various personalities and motives. They normally fall into three main categories:

• Core angels (These Investors with widespread business experience have operated and owned successful businesses of their own. They have vast amount of wealth to invest and they share risks by diversifying their portfolios in all industries)

• High-tech angels (These Investors have less experience than core angels, but invest in latest trends of modern technology. Their investments depend on the value of high-tech holdings primarily)

• Return on investment (ROI) angels (These Investors care about financial reward of high-risk investments. They are motivated to invest taking into consideration what other angels gross income may be)