An angel investor network is a group of individuals (called business angels) who inject capital into a business in exchange for equity. The network is made up of experienced professionals or entrepreneurs who have knowledge and contacts in the industry in which they invest. Business angels invest in companies with high growth potential. Business angels typically step in to provide funding for companies that have exhausted any friends and family investments or personal savings they may have been able to access before they receive any investment from VCs. While most business angels are engaged and helpful, it is important to manage the amount of control relinquished early on.
As an entrepreneur, it is important to listen to their feedback, but not to follow their advice blindly. Angel investors often opt for an equity stake in the business which means that they will own a share of your business; however, nothing prevents an angel investor from providing debt. It is, however, unlikely that at that stage the business will be generating sufficient revenue to be able to service debt. This is where convertible notes and safes often come into play.