Angel investors are accredited investors who allocate a portion of their total investment portfolio to various alternative investments. Within this asset class, angel investors provide emerging startup’s with seed capital through direct, private investments, typically in the form of preferred equity or convertible debt financing, with TiE SoCal Angels preferring the former structure. Given the lower capital risk associated with publicly-traded equities, angel investors seek appropriately higher risk-adjusted returns from their private market investments. Most angels are active investors who contribute their time and experience, as well as offer introductions to valuable contacts essential to a company’s success, because they enjoy helping to define and reach milestones throughout the entrepreneurs’ journey.