What is an Angel investors ?

To understand taxation on Angel Investments, one needs to get a clearer profile of an Angel Investor and what Angel Investment is all about.
 Generally speaking, an Angel investor is a wealthy individual who invests in entrepreneurial firms. Although angels perform many of the same functions as venture capitalists, they invest their own capital rather than that of institutional and other individual investors.
 In addition to capital, an angel investor may also provide expertise to early stage businesses. Increasingly angel investors are forming angel networks to share knowledge & risk and pool their investment capital. Angel capital fills the gap in start-up financing between the ‘three Fs’ (friends, family and fools) of seed capital.

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