angel-funding-terms

Vocabulary Word

Definition

'Angel funding terms' refer to the conditions set when an affluent individual, known as an 'angel investor', provides financial support to a start-up. It's like agreeing on repayment plans when a friend lends you money.

Examples in Different Contexts

In startup financing, 'angel funding terms' refer to the conditions agreed upon between startups and angel investors, including equity share and investment amount. A startup founder might discuss, 'Negotiating favorable angel funding terms was crucial for retaining significant control over our company.'

Practice Scenarios

Tech

Scenario:

The new software has great monetization potential. Let's talk about what might be a fair return on our investment.

Response:

Based on the projected returns, we should arrange angel funding terms that include either a higher equity percentage or a board seat.

Leadership

Scenario:

The team has done a brilliant job building a strong business model. Now, we need to consider the terms that will serve us best in the long run.

Response:

It will be crucial to understand what the investor wants and negotiate angel funding terms that serve our growth plans without risking control.