The correct answer is A private startup investor. Explanation & Key Takeaways: • Angel investors are individuals who provide funding out of their own pockets for startups in exchange for a stake in the company (ownership equity) or convertible debt, which is a type of bond that the holder can convert into a specified number of shares of common stock in the issuing company or cash of equal value. • An angel investor is a high-net-worth individual who provides financial backing for small startups or entrepreneurs. • They are usually individuals who are looking for a higher rate of return than would be given by more traditional investments. • The funds that angel investors provide may be a one-time investment to help the business get off the ground or an ongoing injection to support and carry the company through its difficult early stages. • Angel investment is a form of equity financing. The investor supplies funding in exchange for taking an equity position in the company. • The advantage of angel investment is that financing is much less risky than debt financing. Invested capital does not have to be paid back in the event of business failure. • The primary disadvantage of using angel investors is the loss of complete control as an owner. An angel investor has a say in how the business is run and will also receive a portion of the profits when the business is sold.