People who make a living by investing large sums of money in start-up businesses in exchange for an equity position in the company are called __________.

Question

Quizplus · Accepted Answer

Venture capitalists are specifically known for investing in start-up businesses in exchange for equity positions. This is their primary business model and source of revenue. Equity investors and bankers may also invest in start-ups, but these are broader categories that can include other types of investments. Start-up managers may have equity positions in the company, but they are unlikely to be the primary investors.

People Who Make a Living by Investing Large Sums of Money