Wealthy individuals who invest directly in a new venture in exchange for an equity stake are referred to as which of the following?

Question

Quizplus · Accepted Answer

Angel investors are wealthy individuals who invest their own funds in early-stage ventures in exchange for an equity stake. Venture capitalists are professional investors who manage a fund and invest in more established companies, typically in later stages of growth. Debt capital refers to borrowing money that must be repaid with interest, while equity capital represents ownership in a company.

Wealthy Individuals Who Invest Directly in a New Venture in Exchange