High-net-worth individuals and those with surplus capital to deploy frequently become angel investors.

Angel investors make modern-day startups viable by providing them with the initial funding they require to expand. Entrepreneurs may have amazing ideas, but they often need money to make them a reality, which necessitates dealing with angel investors. Some angel investors are successful entrepreneurs who, after experiencing how angel investment works first-hand, have decided to give it a go using funds from their own success stories. Even if they have no prior experience running a business, they are generally aware of broader industry trends.