_____ are individual investors or groups of experienced investors who provide funding for start-up businesses.

Question

BlackTom AI · Accepted Answer

Question restatement: '_____ are individual investors or groups of experienced investors who provide funding for start-up businesses.'

Option 1: Angel investors. This term is widely used in entrepreneurship and venture funding to describe individuals or groups who invest their own money in early-stage startups, often providing mentorship and guidance in addition to capital. This aligns directly with the definition given in the question.

Option 2: Entrepreneurial capitalists. While this phrase might intuitively refer to investors who support new ventures, it is not the standard terminology used in the field to describe the specific role of individuals who fund startups, making it an inaccurate label in this context.

Option 3: Opportunity entrepreneurs. This term describes a type of entrepreneur or a mindset focusing on pursuing opportunities, not a category of funding sources. It does not refer to investors providing capital, so it does not fit the definition.

Option 4: Equity entrepreneurs. 'Equity' refers to ownership in a company, but this option conflates ownership structure with a class of investors. It is not a recognized label for investors who provide startup funding, so it is misleading in this context.

Option 5: Venture entrepreneurs. While venture-focused activity is common in startup funding, 'venture entrepreneurs' describes people who pursue venture-based activities rather than a funding source or investor type. It is not the standard term for individuals who provide funding, so it does not fit the definition.

Overall, option 1 best matches the description as the established term for individuals or groups who invest their own money in early-stage ventures, often with added mentorship, which is the core idea behind angel investors.

BUS-10-38944 Exam #2 (Chapters 4,5,6,9)

_____ are individual investors or groups of experienced investors who provide funding for start-up businesses.

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