This is what separates Venture capitalists from their angel investor counterpart

Question

This is what separates Venture capitalists from their angel investor counterparts

      a) Venture capitalists use their own money in investments unlike angel investors who get the money from their friends.
      b) Venture capitalists are not financial intermediaries like Angel investors.
      c) Venture capitalists usually take very high risks unlike Angel investors who prefer very low risk investments
      d) None of the above

This is what separates Venture capitalists from their angel investor counterparts

Explanation / Answer

Venture capitalists are the ones who manage a fund or invest other people's money and angel investors are the ones using their own money, so option A is incorrect

A financial intermediary is a financial institution which acts as an intermediary between those who want to borrow. Venture capitalists act as a financial intermediaries only which means they take investor's capital and invest it in company's portfolio, so option B is also incorrect

Venture capital funds being a part of large institutions like pension funds, financial firms, insurance companies are provided as capital and have the potential of bearing high risks as they have the ability to absorb such risks, which angel investors who invest their own money and they might not be large enough, prefer to invest in low risk investments. thus option C is correct

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