DISCUSS the features of international funding and angel financing in the context of corporate financing.
CA Intermediate · Financial Management and Strategic Management · MTP · May 2026
DISCUSS the features of international funding and angel financing in the context of corporate financing.
Suggested Answer and Working Notes:
International Funding: With liberalization and globalization a business enterprise has options to raise capital from International markets also. Foreign Direct Investment (FDI) and Foreign Institutional Investors (FII) are two major routes for raising funds from foreign sources besides ADR's (American depository receipts) and GDR's (Global depository receipts). Obviously, the mechanism of procurement of funds has to be modified in the light of the requirements of foreign investors. Angel Financing: Angel Financing is a form of an equity-financing where an angel investor is a wealthy individual who provides capital for start-up or expansion, in exchange for an ownership/equity in the company. Typically, angels, as they are known as, will invest around 25 to 60 per cent to help a company get started. This source of finance sometimes is the last option for startups which doesn't qualify for bank funding and are too small for venture capital financing.
Topics: Part-A: Financial Management
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