Angel Investor
Funding InvestmentAn angel investor is a wealthy individual who invests their own money into an early startup in exchange for equity.
Plain-English definitions of startup, funding, AI, and tech terms — with Philippine examples where possible.
An angel investor is a wealthy individual who invests their own money into an early startup in exchange for equity.
A bridge round is a smaller, quicker round of funding that helps a startup last long enough to reach its next big priced round.
A cap table is a spreadsheet showing exactly who owns what percentage of a startup, including founders, employees, and investors.
A convertible note is a short-term loan to a startup that converts into equity later, usually at the next priced funding round.
Dilution is the drop in a founder's or existing shareholder's ownership percentage that happens when a startup issues new shares.
Due diligence is the detailed check an investor does on a startup's finances, legal status, and team before finalizing an investment.
An exit is the event where founders and investors finally turn their startup ownership into real cash, usually via acquisition or IPO.
Post-money valuation is a startup's estimated worth right after new investor money has been added, so it always includes that new cash.
Pre-money valuation is what a startup is estimated to be worth right before new investor money is added in a funding round.
A SAFE is a simple contract where an investor gives a startup money now for the right to get equity later, without it being a loan.
A seed round is usually a startup's first real outside funding round, meant to help it build a product and find its first customers.
A Series A is typically a startup's first big round led by professional VC firms, raised once there's real evidence the product works.