Or a one-time upfront investment made by free investors or informal venture capital institutions to an original project idea or a small start-up. It is a form of venture capital, based on the investment amount of angel investors and the comprehensive resources that may be provided to the invested enterprises.

China's well-known angel fund investors are Lei Jun and Xue Manzi.

They mainly invest in very young companies to help them get started quickly. In the field of venture capital, the word "angel" refers to the first investors of entrepreneurs, who put money into the company before its products and business take shape. Angel investors are usually friends, relatives or business partners of entrepreneurs. Because they are convinced of the ability and creativity of entrepreneurs, they are willing to invest a lot of money in entrepreneurs before the enterprises come in. A typical angel investment is often only a few hundred thousand dollars, which is a fraction of the money that venture capitalists may invest in the future.