An angel fund is a sub-category of the Alternative Investment Fund (AIF) that raises funds from angel investors and invests in accordance with the regulations in respective countries. Besides financing startups at a stage where such firms find it difficult to obtain capital from traditional sources of finance such as banks and financial institutions, angel funds offer mentoring to startup entrepreneurs as well as access to their own business networks and portfolio companies.
Put simply, an angel (also called as business angel, informal investor, angel funder, private investor or seed investor), is someone who puts their own finance into the growth of a small business at…