Which of the following statements is true of angel investors?
A) They usually fund start-ups and often require the firms to pledge collateral to back the fund.
B) They typically invest in low-risk opportunities that offer the possibility of marginal rates of return.
C) They usually fund mature firms that have an established track record.
D) They typically provide funds to start-ups in exchange for a share of ownership.

Question

Quizplus · Accepted Answer

Angel investors typically provide funds to start-ups in exchange for equity or a share of ownership, often taking on higher risk for the potential of high returns.

Which of the Following Statements Is True of Angel Investors