Plenty of people start businesses that aren’t right for institutional investment but require additional funding to get to the next level. Angel investors are a great resource in that scenario. An angel investor, by definition, is a person who invests his or her own money into an entrepreneurial company. The term “angel” was originally used to describe investors in Broadway shows, but has since been expanded to general business. Unlike institutional investors like venture capitalists who invest other people’s money, angel investors are generally involved in the very early stages of a company and because they invest their own personal money, a typical angel invests less than $1 million. Below are some considerations when preparing to approach angel investors.