Angel Investors are...

• A. Government grants for small businesses.
• B. Corporate subsidiaries investing in their own projects.
• C. Venture funds that pool capital from multiple investors.
• D. Wealthy individuals who invest personal money into startup businesses.

Answer: (D)

Angel investors are wealthy individuals who invest their own money into early-stage startup businesses. They typically put in smaller, early rounds of funding and take equity in the company, often offering mentorship and valuable connections in addition to capital. This distinguishes them from other funding sources: government grants are funds provided by the government that usually don’t require giving up equity; corporate venture arms are investments made by large corporations into startups, sometimes for strategic reasons; and venture funds pool money from many investors to invest in multiple startups. Because angels use personal funds and focus on early-stage opportunities, they play a crucial role in helping new ventures get off the ground and grow, especially before larger venture funds come in.