ENTREPRENEURIAL FINANCE
SOURCES OF FUNDING
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Banks
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Angel Investors
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Shareholders
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Crowdfunders
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Detailed explanation-1: -What Is an Angel Investor? Angel investors are wealthy private investors focused on financing small business ventures in exchange for equity. Unlike a venture capital firm that uses an investment fund, angels use their own net worth.
Detailed explanation-2: -Angel investors are typically wealthy individuals or fellow entrepreneurs-rarely professional venture capitalists-who are willing to do whatever it takes to get a startup off the ground, which usually means money. In general, angel investing involves funding, advice and various kinds of management support.
Detailed explanation-3: -An angel investor (also known as a business angel, informal investor, angel funder, private investor, or seed investor) is an individual who provides capital for a business or businesses, including startups, usually in exchange for convertible debt or ownership equity.
Detailed explanation-4: -Angel investors are wealthy individuals who provide capital to help entrepreneurs and small businesses succeed. They are known as “angels” because they often invest in risky, unproven business ventures for which other sources of funds-such as bank loans and formal venture capital-are not available.