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CMA Final · Entrepreneurship and Startup · The Entrepreneurial Ecosystem

Aarav, an experienced professional, invests his personal money in a Pune-based software startup at an early stage, takes equity, and also mentors the founders using his industry contacts. Aarav is best described as:

Aarav is an angel investor. Angel investors are individuals who put their own money into early-stage startups in exchange for equity, and they commonly add value through mentoring and business contacts, unlike lenders, acquirers or platform operators.

  1. AA venture debt lender
  2. BAn angel investorCorrect
  3. CA strategic acquirer
  4. DA crowdfunding platform operator

Explanation

Angel investors are wealthy individuals who invest their own funds in early-stage ventures for equity and often provide mentoring and networks. Venture debt lenders provide loans, not equity-with-mentoring from personal funds. An acquirer buys control, and a platform operator merely intermediates.

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