CAF-7 · Chapter 8 · Question 7 of 15
A technology start-up with a high risk of failure but massive growth potential is looking for equity finance. They approach a wealthy individual who is willing to invest personal funds and offer business mentoring. This type of investor is best described as a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Business Angel
Explanation
Business Angels are wealthy individuals who invest their personal capital directly into high-growth start-ups, often providing personal mentoring and business expertise. Venture Capital firms invest pooled institutional money.
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