Which source of startup funding involves individuals investing personal money?

• A. Venture Capital
• B. Loans from Banks
• C. Government Grants
• D. Angel Investors

Answer: (D)

Angel investing is funding provided by individuals who invest their own money in early-stage startups. These investors typically seek equity in exchange for the capital and may also offer mentorship and valuable connections. This distinguishes them from venture capital, which uses pooled money from multiple investors and often makes larger, later-stage investments with more formal terms. Bank loans come from financial institutions and are debt that must be repaid with interest, not equity. Government grants are funds from government programs, usually non-dilutive and awarded for specific purposes or criteria. So, the scenario described—someone putting in personal funds to start or grow a venture—fits angel investing best.