Business angels provide what type of capital?

• A. Informal Venture Capital
• B. Public Equity
• C. Bank Loans
• D. Government Grants

Answer: (A)

Business angels provide informal venture capital: they are private individuals who invest their own money in early-stage companies, usually in exchange for equity. This type of funding is informal because it comes from individuals rather than formal investment funds, and decisions can be faster and more flexible. Angels often offer more than money, bringing mentorship, guidance, and valuable networks to help a young company grow. This contrasts with public equity, which involves selling shares on a stock market to broad investors; bank loans, which are debt financing requiring repayment with interest and often collateral; and government grants, which are non-dilutive funds usually subject to specific criteria and restrictions.