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    Question

    Which statement is true about angel investors?

    A They provide secured loans to startups Correct Answer Incorrect Answer
    B They usually invest for a short term of 1-2 years Correct Answer Incorrect Answer
    C They expect substantial equity in the business due to the high risk Correct Answer Incorrect Answer
    D They operate through large institutional funds Correct Answer Incorrect Answer
    E They do not expect any returns on their investment Correct Answer Incorrect Answer

    Solution

    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.

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