Principal Investor
From Wikipedia, the free encyclopedia
A principal investor is someone who invests in your company. Often when a company is started, they search for investors, as an alternative to receiving a bank loan. One is able to apply for a bank loan, or they can get people to invest into their company. Majority of the time there is a promised reward for investing, for example, "If you give me $100,000 to start my company, I promise you that I will double your money in 1 year."
If you're ever going to give someone your money to start their company, please be very careful, as there is lots of scams out there, or if the company goes down and goes bankrupt, you have no security, your money is gone forever.