Question

Q. These are groups of investors who band together to make investments in start-ups. This enables them to invest with more confidence, with larger check sizes, and with lower exposure to risk. Which type of investors are being discussed here?

• A.
  Venture capital firms
• B.
  Corporate investors
• C.
  Angel investors
• D.
  Accelerators & Incubators

Answer 1

The correct option is C

Angel investors
Explanation:

Angel investors: They have become more popular and more organized. These are groups of angel investors who band together to make investments in startups. This enables them to invest with more confidence, with larger check sizes, and with lower exposure to risk.

Option (a) is incorrect: Venture capitalists are fundraiser entrepreneurs. They come with the biggest checks, the most power to fuel success and gaining market share, and most juice when it comes to achieving more credibility and visibility.

Option (b) is incorrect: Corporate investors: By investing these types of investors support their own growth numbers, diversifying assets, and identifying talent and technology which can help them fend off industry changes and fuel revenues and profits. Some have funds to invest in outside start-ups. More are launching their own accelerator and incubator programs and ecosystems for cultivating these opportunities.

Option (d) is incorrect: Accelerators & Incubators: They provide a variety of the types of investors on this list. If accepted into one of these programs you may receive anywhere from $\$10,000\text{to}\$120,000$ in seed money to cultivate your idea and gain traction, while benefiting from additional knowledge and resources. They help in getting investors and nurturing the idea.