The term 'Angel Investor' originated in the Broadway theatrical world, where plays were often financed by wealthy individuals rather than formal lenders, and payments were due only when and if the production was a succes

As per Regulation 19A (1) of SEBI (Alternate Investment Fund) Regulations 2012, Angel Fund means a sub-category of Venture Capital Fund under Category I of Alternative Investment Fund that raises funds from angel investors and invests in accordance with the provisions of Chapter III-A of the AIF Regulations. Angel fund invest in startups which are not promoted or supported by or related to Industrial Group whose group turnover exceeds ₹ 300 crores. Angel funds can accept investment from maximum 200 investors. The investment by an angel fund is in the range of ₹ 25 lakh to ₹ 10 crores. They are regulated by SEBI (Alternative Investment Fund) Regulations, 2012. As per Regulation 19A (2) of SEBI (Alternate Investment Fund) Regulations 2012 'Angel Investor' means any person who proposes to invest in an angel fund and satisfies one of the following conditions, namely, an individual investor who has net tangible assets of at least ₹ 2 crore excluding value of his principal residence, and who: has early stage investment experience, or has experience as a serial entrepreneur, or is a senior management professional with at least ten years of experience. Early-stage investment experience shall mean prior experience in investing in start-up or emerging or early-stage ventures and 'serial entrepreneur' shall mean a person who has promoted or co-promoted more than one start-up venture. a body corporate with a net worth of at least ₹ 10 crore; or an Alternative Investment Fund registered under SEBI AIF Regulations or a Venture Capital Fund registered under the SEBI (Venture Capital Funds) Regulations, 1996.