Question

We have all heard of a venture capitalist in the IT industry. Who or what is an angel investor?

• A. Someone who puts moneyin the beginning of the project and usually does not expect returns on the investment.
• B. Someone who puts moneyin an internet company that is running into losses.
• C. Someone who givesonly technical consultancy for the project.
• D. None of the above

Answer 1

The Correct Option is A

Angel investors generally provide capital to startup's or early-stage businesses, exchange for convertible debt or ownership equity in the business. They generally take higher risks as compared to traditional investors.

The correct option is (A): Someone who puts money in the beginning of the project and usually does not expect returns on the investment.