Asked by Talyn Rhodes on May 13, 2024
Verified
Farah is an engineer with an idea for a flexible solar energy material that would have a wide range of military and civilian applications.She estimates that she will need approximately $300,000 to develop a prototype.Friends and family could provide about $75,000.She contacts Natalie,an angel investor,for this purpose.In this case,which of the following is likely to be true?
A) Farah is likely to receive a report from Natalie that is more thorough than those by formal venture capitalists.
B) Natalie is likely to be a wealthy individual with expertise in the field.
C) Farah is unlikely to expect more than just financial support from Natalie.
D) Natalie is unlikely to be a private investor.
Angel Investor
An affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.
Venture Capitalists
Investors who provide capital to startup companies and small businesses with long-term growth potential in exchange for equity.
Financial Support
Monetary assistance provided to individuals or organizations to help cover costs or fund activities.
- Grasp the role and expectations of angel investors in startup financing.
Verified Answer
May 14, 2024
Learning Objectives
- Grasp the role and expectations of angel investors in startup financing.
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