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What are Angel Investors? 

Angel investors are affluent individuals who provide capital to startups or early-stage companies in exchange for equity ownership or convertible debt. These investors often offer not only financial support but also valuable business expertise and mentorship.

Advantages:

• Funding Source: Provides crucial early-stage funding.
• Expertise: Offers business acumen and industry connections.
• Flexibility: Often more flexible than traditional financing options.

Disadvantages:

• Equity Dilution: Founders give up a portion of ownership.
• High Expectations: Investors may expect significant influence in decision-making.
• Risk of Conflict: Potential for disagreements on company direction.

Example: 

Jeff Bezos, founder of Amazon, invested $250,000 in Google in 1998 as an angel investor, which significantly appreciated as Google grew, showcasing the potential high returns of successful angel investments.

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