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Angel investing involves affluent individuals providing capital to early-stage startups in exchange for equity ownership or convertible debt. These investors, known as angel investors, offer not only financial support but also mentorship, industry connections, and business expertise. Angel investing is crucial for startups that need funding to develop products, enter markets, and achieve growth milestones. This form of investment carries high risks due to the early stage of the companies, but it also offers the potential for substantial returns if the startups succeed. Angel investors play a vital role in fostering innovation and entrepreneurship by supporting new business ventures.