Final answer:
An investor, or in specific contexts, an angel investor or venture capitalist, is a person or entity that provides funds for business ventures. These funds can come from personal savings, angel investors, venture capitalists, or through other means such as reinvesting profits, selling stock, or issuing bonds.
Step-by-step explanation:
A person (or institution) who invests money or makes the funds available is often referred to as an investor, angel investor, or venture capitalist, depending on the context and nature of the investment. Individuals or entities that provide financial capital to businesses, especially small businesses, play a crucial role. These investors may use their own money, such as the business owners dipping into personal savings, or they may be external investors seeking ownership in the company.
For example, someone starting a new restaurant may use personal funds or take out a loan using personal assets as collateral. Meanwhile, cities often have networks of angel investors who offer capital to budding businesses for a stake in the firm. Larger investments may come from venture capital firms that specialize in high-potential growth companies. Other financial capital-raising strategies can include reinvesting profits, selling stock, or issuing bonds.