Glossary Term
Angel Investor
Definition
An Angel Investor is an individual who provides financial backing to early-stage startups or entrepreneurs, typically in exchange for equity ownership or convertible debt. In the MedTech industry, angel investors often support the development of innovative medical devices, technologies, or services during the high-risk, early phases of a company's growth.
Relevance to the MedTech Industry
Angel Investors play a crucial role in fostering innovation by supplying critical funding for startups working on disruptive medical technologies. Their investments enable early-stage companies to advance research, develop prototypes, and navigate initial regulatory hurdles, bridging the gap between idea conception and venture capital or institutional funding.
Additional Information & Related Terms
Seed Funding Early-stage investments often provided by angel investors.
Convertible Debt A common investment vehicle used by angel investors.
Venture Capital (VC) Angel Investors often precede or complement VC funding in a startup's lifecycle.
Exit Strategy How angel investors realize returns on their investments, typically through IPOs or acquisitions.