Question

Eric plans to start a small business soon. His business ideas look promising. He has been trying to raise finance from all kinds of sources for his business in the past few months. However, private investors, banks, and even his personal contacts are not ready to invest in his business. What source could be his last resort to raise finance for his business?

A.
angel investors
B.
Venture Capitalists (VCs)
C.
Small Business Administration (SBA) loans
D.
family and friends
E.
Initial Public Offering (IPO)

Answer 1

The answer is Angel Investors.

Angel investors are specialists in investing in start up firms. As the banks, major investors and even family and friends have denied to invest in this firm, angel investors are the last option this firm has. There is also another option Eric can use, that is the crowd sourcing, but it's not possible to say how much he can raise.

Step-by-step explanation: