How does an angel investor typically support a startup?

An angel investor typically supports a startup by providing mentorship and industry connections in addition to financial backing. This form of support is crucial for early-stage companies as these investors often have substantial experience and knowledge in the industry. They can guide entrepreneurs in making strategic decisions, refining their business models, and navigating challenges that come with launching a new venture.

The relationships that angel investors cultivate within their networks also open doors for startups, offering potential partnerships, clients, or future funding sources. This combination of financial investment and strategic support significantly enhances the likelihood of success for startups, as they benefit from both capital and the expertise of seasoned professionals.