The term "angel investor" originated in England where wealthy people would provide money for theatrical events. In 1978, University of New Hampshire professor William Wetzel began a study of seed capital and began calling the investors "angels" that supported these newly formed companies. Angel investors are often retired executives or entrepreneurs that often are interested in investing for reasons other than pure financial return. Angel investors often find satisfaction in investing in a company and watching it grow to sizable proportions. Angels can provide more than capital, in the form of advice, management, and contacts in their rolodex. Angel investors can often make connections that a younger startup founder cannot.
As of 2007, in the United States there were approximately 258,000 active angel investors. According to the SBA, somewhere between 300,000 and 600,000 angel deals were made during the period of 2001-2003. In 1996, there were approximately 10 angel investment networks in the United States. In 2008, it is suggested there are now over 300 of these groups. Some of these networks are larger than others, having their own full-time workforce, and sizable operating budgets.