What type of investment does an Angel Investor typically make?

An Angel Investor typically provides funding to promising startups and early-stage companies. This type of investment is characterized by the individual investor's willingness to take on significant risk in exchange for the potential of high returns as the company grows and succeeds. Angel investors often supply not only capital but also valuable mentorship and industry connections, helping to nurture the business at a crucial stage in its development.

Investing in startups allows angel investors to directly support innovative ideas and potentially benefit from the high growth potential that comes from successfully scaling a new business. This contrasts with other types of investments listed in the options, which do not focus on emerging enterprises; real estate investments are centered around physical properties, bonds and government securities tend to be more stable and lower-risk, and penny stocks often involve high volatility and risk with established companies rather than new ventures. Hence, funding startups aligns perfectly with the motivations and objectives of an Angel Investor.