Angel capital refers to the financial investment provided by affluent individuals, known as angel investors, who offer funding to early-stage startups in exchange for equity or [[convertible debt]]. This form of capital is important for startups because it often represents one of the first sources of external funding that enables them to move beyond the concept stage and into product development and market entry. Angel investors not only provide necessary financial resources but also bring valuable expertise, mentorship, and industry connections that can significantly enhance a startup's chances of success. Angel capital often fills the gap between personal savings and larger-scale [[venture capital]] funding.