Business firms, or groups of individuals, that invest in new and growing firms in exchange for an ownership share are referred to as which of the following?

Question

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Venture capitalists are business firms or groups of individuals who invest in new and growing firms in exchange for an ownership share. Angel investors typically invest with their own money, while venture capitalists manage funds from various investors. Investment bankers help companies raise capital through public offerings or private placements, but do not typically take an ownership stake in the firm. "Start-up investors" is not a commonly used term.

Business Firms, or Groups of Individuals, That Invest in New