MANAGEMENT

BUISENESS MANAGEMENT

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Angels financing only invest in businesses, which they are strongly familiar
A
TRUE
B
FALSE
C
Either A or B
D
None of the above
Explanation: 

Detailed explanation-1: -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 financing refers to an investment model wherein “business angels” – essentially, high net worth individuals – provide financial backing for small businesses in exchange for equity in the company. Angel financing can be a one-time investment, or it can refer to ongoing support.

Detailed explanation-3: -In general, angel investors invest in early-stage companies, while venture capitalists invest in later-stage companies. Angel investors are typically less risk averse than VCs and hence more willing to take risks on new concepts or ideas which have not been tested yet but have the potential for success.

Detailed explanation-4: -The correct answer is Equity. Angel investors are also called informal investors, angel funders, private investors, seed investors or business angels. These are individuals who inject capital for startups in exchange for ownership equity or convertible debt.

There is 1 question to complete.