The name given to three types of people who make the second round of investors in an unquoted company. The first round is done by the entreprenuer generally in time and his savings.
Family and friends have known the entrepreneur for many years personally and are often investing in the person and his dream rather than looking at the business in great detail.
On the other hand, the business angel knows nothing of the history or background of the entreprenur yet still puts his money into the company. The wise person will carry out a large amount of research and due diligence before making the investment. However, no amount of research can eliminate all risk… so is the business angel wise or a fool. Only time will tell if they have earnt the title of 3rd F!
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