Recruiter's Glossary

Examples: Carried Interest • MFN • Follow-on Investment

Angel Investment

Term from Venture Capital industry explained for recruiters

Angel Investment refers to early-stage funding that individual investors (called angel investors) provide to startup companies. Unlike bank loans or venture capital firms, angel investors use their own money to help new businesses grow in exchange for ownership shares. Think of it like the TV show "Shark Tank" - wealthy individuals invest their money in promising new companies. This type of investment typically happens when a company is just starting out, before it's ready for larger investments from venture capital firms.

Examples in Resumes

Secured $500,000 in Angel Investment for startup expansion

Prepared pitch deck that attracted Angel Investor funding

Managed relationships with Angel Investors resulting in $2M seed round

Typical job title: "Angel Investment Analysts"

Also try searching for:

Investment Analyst Venture Capital Analyst Angel Fund Manager Early Stage Investment Associate Startup Investment Analyst Deal Flow Manager Investment Associate

Where to Find Angel Investment Analysts

Investment Networks

Professional Groups

Events & Conferences

• Angel Investor Meetups
• Startup Investment Events

Example Interview Questions

Senior Level Questions

Q: How do you evaluate the potential of a startup for angel investment?

Expected Answer: Should discuss evaluating the founding team, market size, product-market fit, financial projections, competition, and growth potential. Should also mention importance of due diligence and risk assessment.

Q: What are the key terms in an angel investment deal and how do you structure them?

Expected Answer: Should explain concepts like valuation, equity stakes, term sheets, convertible notes, and protection clauses in simple terms. Should demonstrate understanding of negotiation points and standard market terms.

Mid Level Questions

Q: What's the difference between angel investment and venture capital?

Expected Answer: Should explain that angel investors use personal money for early-stage investments, while venture capital firms use pooled money from various sources for typically larger, later-stage investments.

Q: How do you conduct due diligence for an angel investment?

Expected Answer: Should describe checking financial records, market analysis, competitor research, team background checks, and legal documentation review process.

Junior Level Questions

Q: What are the typical stages of startup funding?

Expected Answer: Should be able to explain the basic funding sequence: friends and family, angel investment, seed round, Series A, B, C, etc., and typical investment amounts for each.

Q: What documents are typically included in an angel investment pitch deck?

Expected Answer: Should mention key components like company overview, market opportunity, financial projections, team background, and funding requirements.