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.
- AA venture debt lender
- BAn angel investorCorrect
- CA strategic acquirer
- 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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