What is the most likely source for early stage equity capital under $250,000?

Question

Quizplus · Accepted Answer

Informal investors, also known as angel investors or seed investors, are the most likely source for early stage equity capital under $250,000. These individuals invest their own money in start-ups or small businesses and may offer mentorship or business expertise in addition to funding. SBICs (Small Business Investment Companies) typically provide larger funding amounts and corporations may prefer to acquire or partner with existing businesses rather than invest in early stage start-ups. Private placements may also offer larger funding amounts and may not be accessible to early stage businesses without an established track record.

What Is the Most Likely Source for Early Stage Equity