Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Resource Mobilisation

Question:
Which of the following is true about angel investors?
Options:
Most angel investors are current or retired executives, business owners or high net worth individuals who have the knowledge, expertise, and funds that help start-ups match up to industry standards.
Angel investors bear moderate risk and are usually subject to dilution from future investment rounds.
Angel Investors only invest funds and most angels do not provide any advice, guidance, industry connections and mentoring start-ups in its early days.
All of the above
Correct Answer:
Most angel investors are current or retired executives, business owners or high net worth individuals who have the knowledge, expertise, and funds that help start-ups match up to industry standards.
Explanation:
1) Most angel investors are current or retired executives, business owners or high net worth individuals who have the knowledge, expertise, and funds that help start-ups match up to industry standards.
2) As angel investors bear extremely high risk and are usually subject to dilution from future investment rounds. They expect a very high return on investment.
3) Apart from investing funds, most angels provide proactive advice, guidance, industry connections and mentoring start-ups in its early days.
4) Their objective is to create great companies by providing value creation, and simultaneously helping investors realize a high return on investments.
5) They have a sharp inclination to keep abreast of current developments in a particular business arena, mentoring another generation of entrepreneurs by making use of their vast experience.