Which of the following statements is true of angel investors?
A)They usually expect a minimum return on investment from the start-ups they fund.
B)They typically invest in low-risk opportunities involving established firms.
C)They usually fund more mature firms that have an established track record.
D)They typically provide funds to start-ups in exchange for a share of ownership.

Question

Quizplus · Accepted Answer

Angel investors are individuals who provide funds to start-ups in exchange for a share of ownership. They tend to be high-risk investors who are willing to invest in early-stage start-ups and provide seed capital to help them get off the ground. They may also provide mentorship or other types of support to the start-up in addition to funding. They do not typically expect a minimum return on investment from the start-ups they fund, as they understand the high-risk nature of these investments.

Which of the Following Statements Is True of Angel Investors