An entrepreneur has conducted crowdfunding to raise enough money for patents and building the founding team.He is now looking for funds to form a prototype and pitch the product to new investors.Which of the following is the most likely source of funds?

Question

Quizplus · Accepted Answer

An angel investor is the best choice for funding the formation of a prototype and pitching the product to new investors. Angel investors provide seed capital to start-ups and may also provide guidance and mentorship to the entrepreneur. Venture capitalists typically invest in established businesses, whereas family and friends may not have enough funds to provide significant funding. Venture capitalist groups may also invest in established businesses and typically require a larger amount of funding than what is needed for a prototype.

An Entrepreneur Has Conducted Crowdfunding to Raise Enough Money for Patents