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There are different sources for equity funding including; venture capitalists, business angels, initial public offerings among others. The Business angels refer to individuals of high net worth who invest their capital directly into start-ups. These are firms that are beginning their operations and are considered to be high risk as there is no certainty if the business will penetrate the market or fail. Business angels focus on the survival of such institutions to facilitate their growth. They are anonymous and will mostly be known only through referals.