Question

Ganga Dhar was working as the production manager in a German company. The company was producing remote operated high-end kitchen equipments. He resigned from his job and returned to Patna, his hometown. In Patna he met Aditya, his old friend, who had been managing his factory producing steel utensils with old technology. Ganga Dhar encouraged Aditya for the production of high-end kitchen equipments. He also promised to help Aditya by providing funds and his expertise so that the production unit run by Aditya can develop into a big production house and its investors may get high return on investments. Identify the kind of‘source of capital’ provided by Ganga Dhar to Aditya and explain the same.

Answer 1

Angel Investors: Following are the features of Angle Investors: 

1. They are current or retired executives, business owners or high net worth individuals who have the knowledge, experience, and funds. 

2. They bear extremely high risk and expect a very high return. 

3. They provide proactive advice, ‘ guidance industry connections and mentoring start-ups in its early days. 

4. Their objective is to create great companies by providing value creation. 

5. They have a sharp inclination to keep abreast of current.