Question

The typical investment range for angel investors is generally thought to be_____

group of answer choices
a. up to $5,000
b. up to $20,000
c. between $25,000 and $100,000
d. between $75,000 and $150,000

Answer 1

Angel investors typically invest amounts between $25,000 and $100,000 into early-stage startups, seeking to achieve high returns despite the high risks associated with such investments.

Step-by-step explanation:

The typical investment range for angel investors is generally thought to be between $25,000 and $100,000. Angel investors play a vital role in funding early-stage startups and are known for providing capital in exchange for equity or convertible debt in a company. They often bridge the gap between the small-scale financing provided by friends and family and the larger venture capital funding.

The willingness of angel investors to fund startups stems from the understanding that although many small startup businesses may fail, the potential of high returns from a few breakout successes can compensate for numerous losses. This financial contribution is critical for startups that are looking to scale quickly and require cash infusion to accelerate growth and development.