Here’s how you know your startup is ready for an investor.

If you have a startup and are looking for money to grow, you might be on the hunt for an angel investor.

These investors, sometimes called informal or seed investors, often support businesses in their early stages, backing unproven but promising companies with the investor’s own money. They are likely to provide mentorship and advice along with funding for startup founders.

But just because these relationships are more personal does not mean they are casual. Angel investors are careful about where they invest their money because of the potential for it to be lost if a company never takes off.

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