A private investor who funds start-up companies is known as what?

• A. Venture Capital
• B. Angel
• C. Bootstrapping
• D. Line of Credit

Answer: (B)

An angel investor is a private individual who funds startups, usually in the very early stages, in exchange for equity or convertible debt. They often offer not just capital but mentorship and industry connections, helping founders bridge the gap before larger venture-capital firms come in. Venture capital refers to professional investment firms that invest larger sums with structured terms; bootstrapping means funding the business from the founders’ own resources and revenues, without external investors; a line of credit is debt financing from a bank that must be repaid. So the description fits an angel investor.