One of the biggest challenges entrepreneurs face is finding funding. In the early stages, banks or venture capital firms often hesitate to invest due to lack of guarantees or financial history. This is where angel investors play a crucial role.
Unlike traditional financiers, an angel investor is not only a source of capital but also a strategic partner, sharing experience, guidance, and risk. To better understand the role of angel investors, Sayidaty spoke with Dr. Dana Saftali, an entrepreneurship and leadership coach, and co-founder of the global personal development platform “YouVision.”
Who Is an Angel Investor?
According to Dr. Saftali, an angel investor is an individual who uses personal funds to invest in a startup in exchange for equity. They usually invest in the seed stage, when a project needs both financial support and confidence before attracting venture capital.
Angel Investor vs. Traditional Funders
Dr. Saftali highlights key differences:
| Aspect | Angel Investor | Bank / Traditional Investor |
|---|---|---|
| Funding Type | Equity partnership | Loan with interest |
| Risk | Loses investment if project fails | Must be repaid regardless |
| Flexibility | Invests based on idea & team | Requires financial track record & collateral |
| Added Value | Provides expertise, mentorship, and connections | Provides money only |
| Goal | Support innovation and growth | Recover capital with interest |
Advantages of an Angel Investor
Practical experience from successful entrepreneurs.
Networking opportunities with partners, clients, and future investors.
Market credibility that attracts venture capital later.
Strategic guidance in growth and company culture.
For example, in 2025, Angels for Women in Italy not only funded startups led by women but also provided training and strategic support, dramatically increasing their chances of growth.
When to Seek an Angel Investor
Dr. Saftali explains that several factors make a startup appealing to angel investors:
Proof of concept – A prototype or pilot demonstrating the idea works.
Strong founding team – Investors bet on people as much as ideas.
Clear market vision – A scalable growth plan and understanding of competitors.
Early traction – Initial customer interest or engagement as evidence of market potential.
A 2025 study found that startups attracting angel investors after proving their concept had a 23% higher survival rate than those without such support, and angel investments increased by over 30% from the previous year, especially in scalable digital solutions.
Conclusion
"An angel investor is the bridge between dream and reality," says Dr. Saftali. They do more than provide money—they build trust, expand networks, and bring practical expertise, making a startup more likely to grow and succeed.
Unlike banks, which focus on guarantees and short-term returns, angel investors bet on the future. Entrepreneurs should approach angel investors once they have a validated idea, a strong team, and a clear vision, ensuring they are ready for a partner who believes in them and joins them on their journey.
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