What is a private investor?

The short answer: A private investor is a person or company that invests their own money into a company, with the goal of helping that company succeed and getting a return on their investment.

The long answer: The field of private investment is more varied than the short answer might make it seem at first. It's important to note that while some types of private investors may be from firms that focus solely on investments — like VC firms and angel investors — they are never from banks (for example, SBA bank loans).

The four main types of private investors

a. Friends and family

Family and Friends are often the first private investors that startups and small businesses turn to. They're a great resource for seed funding a...