Which of the Following Statements Is NOT True Regarding Angel

question 95

Multiple Choice

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

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

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