Who are business angels and what do they do?

There is an interesting economic term “business angels” in many entrepreneur games. The term «business angel» appeared in 1978. So they began to call private individuals who invest personal funds in promising projects. Before that, the term “angel”  meant art connoisseurs financed theatrical performances. Now “business angels”, accumulating their capital through special Internet platforms and creating professional communities, are an important part of venture funding.

Why do startup simulators need business angels? 

External and internal sources of financing are available to those who are starting to develop a promising business project.  External funds include funds from banks and venture funds, grants from specialized organizations, and state assistance.  The internal ones include family savings, loans from friends, and personal property. But often personal funds are not enough, and traditional external investors do not always like the startup itself, or its creator, or they are not satisfied with the collected documents. Then other well-off persons who can give impetus to the development of a startup can come to the rescue. Examples of projects that have received such funding are Facebook, PayPal, Alibaba.