Someone who lends money, or otherwise purchases equity, is called an investor. The money he is spending are his investments.
What do you call the person on the receiving end of this arrangement?
asked Sep 21, 2014 at 22:05
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Surely money you've lent to someone can be considered an investment though.– dwjohnstonSep 21, 2014 at 22:10
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investment vehicle: investopedia.com/terms/i/investmentvehicle.asp– Blessed GeekSep 22, 2014 at 0:34
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I guess "in general" you'd say that's the entrepreneur or the start-up. So, you can imagine a large meeting or talk, and someone would say "all you entrepreneurs sit over this side, all investors this side please" or the like.– FattieSep 22, 2014 at 4:59
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2 Answers
As someone involved in the venture-capital space, I would use different words depending on the scenario in question.
- Someone who receives money in exchange for a promise to pay it back later is called a borrower1, and the person making the loan is the lender:
A person that has applied, met specific requirements, and received a monetary loan from a lender.
- Someone who receives money in exchange for equity is called an investee1, and the person investing the money is called an investor.
A company or entity in which an investor makes a direct investment.
- You could also use investor to describe a person who loans money, in the case of a loan. But I would probably always call the recipient a borrower, not an investee: the goal of the investment is very different in the two cases.
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It is not enough to link quotes, citations must be properly attributed. What to do about missing source attributions? etc. there are many other posts on this issue. Apr 30, 2015 at 5:23
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@Mari-LouA: I think you got me in between edits. I wanted to format the link a little better because the original editor's sentence was poorly formatted, didn't actually link anywhere, didn't reference the citation in question, etc. Apr 30, 2015 at 6:26
The receiving end of the arrangement would be the "investee". From www.investorwords.com:
A company or entity in which an investor makes a direct investment
