Which of the Following Statements Is NOT True Regarding Angel

question 18

Multiple Choice

Which of the following statements is NOT true regarding angel investors?

• A)For many start-ups, the first round of outside private equity financing is often obtained from them.
• B)Because their capital investment is often large relative to the amount of capital already in place at the firm, they typically receive a sizeable equity share in the business in return for their funds.
• C)They are typically arranged as limited partnerships.
• D)These investors are frequently friends or acquaintances of the entrepreneur.