Question

Explain angel investors as a source of finance for a business venture.

Answer 1

• High-net-worth individuals, known as angel investors, lend money to start-ups and early-stage companies in exchange for convertible debt or equity.
• In addition to frequently investing their own money, they might also provide industry connections, coaching, and strategic advice to support the company’s expansion.
• Angel investors are a strong source of capital for creative but unproven business ideas because they are typically more risk-tolerant than traditional lenders.