Angel investors are high net-worth individuals who invest in early-stage companies in exchange for equity (typically in the form of preferred stock). Many angel investors are members of angel groups — networks which allow the angels to increase their access to investment opportunities and diversify their investment portfolio. These networks allow the angels to increase their access to investment opportunities and diversify their investment portfolio. 

Technically, accredited angel investors are defined by Rule 501 of SEC Regulation D. An accredited investor is defined as “any natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of their purchase exceeds $1,000,000” or “any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and who reasonably expects to reach the same income level in the current year.”