A person or organisation that invests money into a financial opportunity with the expectation of achieving a return.
Accredited Investors: Investors who are considered sophisticated by a regulator, often measured by asset size, qualification and/or experience.
Angel Investor (Business Angel): An individual who provides capital to start-ups. Angel investors are rarely involved in the daily management of the company but often add value through capital, network and expertise.
Institutional investor: A financial organisation that invests in others. Institutional investors such as insurance companies, pension funds, and mutual funds make up a large portion of private equity limited partners.
Lead Investor: The investor who provides initial venture capital and anchors early financing rounds. The lead investor typically invests at least 10-15% of the round and often has the highest share of equity. Other investors have confidence in an investment if they trust the lead investor’s due diligence.