Now let's talk about another important element of the entrepreneurial ecosystem that would be Angel investors. In this section we'll talk about who angel investors are, the types of securities they use, and how those securities work. Let's jump right in. Who are Angels? Well, the term itself comes from early financier's of Broadway shows. They typically refer to high net worth individuals. What does that mean? Well, the Securities and Exchange Commission has a rule that describes what an accredited investor is. Typically when we're thinking about Angel investors, we're thinking about investors who are accredited to purchase unregistered securities. According to the SEC to meet the definition of an accredited investor, you need to have net worth that exceeds a million dollars, or you need to have annual income that exceeds $200,000 for the last two years, or if you are a joint household, you need to have joint income that exceeds $300,000 a year. It turns out, although that sounds like a lot of money, and of course we're talking about the very wealthy, the Federal Reserve Board estimates that there are about 10 million households in the US that would qualify to live by those rules. So although that's a small slice of the overall American economy, it's important to understand that this market is probably pretty large compared to the VC market. What Angel investors do. Well, they're allowed to invest in unregistered securities offerings. Primarily what an Angel investor does, is they invest in very, very early stage companies. They might provide money to affirm to invest in a pre-seed or a seed round, where we're talking about an investment of maybe $250,000 to $750,000 for a seed round. That money might go to helping the company prove a concept, or build a minimum viable product. Or maybe if it's a little bit later post-seed stage, it might be a very early stage investment where we're talking about maybe $2 million to $3 million invested in a pre-revenue company that maybe already has a concept, but still has a lot of hurdles to cross before it's ready to receive venture capital. So that's who Angels are, and what angels do. There's some interesting success stories. Angels have been around for a long time. You can go back to Amazon.com, and that's now a household word literally. Two angels invested $54,000 in Amazon. At the IPO, that investment was worth over $7 million. We can go back in history and find lots of famous examples of angel investments. The Bell Telephone Company was invested by Angel investors, Ford Motors had Angel investors, Apple had Angel Investors, and indeed even Pete's brewing had angel investors. So angels have been around for a long time, and yes there are some household names that had Angel backing. But if you look at the returns to Angel investment, most of the time the return is negative 100 percent, in other words a total loss. So about half of all Angel investments result in a total loss.