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Question
Answer each of these questions in about two hundred and fifty words:
Explain the characteristics of angle investors.
Solution
Following are the characteristics of angle investors:
- High net worth: Most angle investors are current or retired executives, business owners, etc. They have the knowledge, expertise, and funds to help start-ups.
- High risk: Angle investors bear extremely high risk. They expect a very high return on investment which they are making.
- Guidance: Most angle investors provide proactive advice, guidance, or mentoring services for the start-ups in its early days of the enterprises.
- High returns: Angle investors also have objective to create successful companies by providing value creation, and guiding investors realize a high return on investments.
- Experience: Angle investors have a sharp inclination to keep themselves updated to current developments in a particular business area and then mentor another group of entrepreneurs by making use of their precious experience.
- Type of Investments: Most angles invest in small, start-up businesses with fewer employees. The arrangements are informal.
- An individual investor: Angle investors are usually individuals.
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