There are several types of investors, each with unique characteristics and investment strategies:
1. Angel Investors: Typically, high-net-worth individuals who provide early-stage funding in exchange for equity. 2. Venture Capitalists: Professional investors who manage pooled funds and invest in high-growth startups. 3. Institutional Investors: Entities like pension funds, insurance companies, and mutual funds that invest large sums of money. 4. Private Equity Firms: Firms that acquire companies, often restructuring them to improve profitability before selling at a higher value. 5. Crowdfunding Investors: Individuals who contribute small amounts of money through online platforms to support a business idea or project.