Answer-Which statement is true about angel investors?

Angel investors are affluent individuals who invest in startups in exchange for equity. Given the high risk involved, they expect a substantial stake in the business. Their investment horizon is typically 3-8 years.

Question

Which statement is true about angel

investors?

A They provide secured loans to startups

B They usually invest for a short term of 1-2 years

C They expect substantial equity in the business due to the high risk

D They operate through large institutional funds

E They do not expect any returns on their investment

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Solution