We will know about the differences of Angel Investors Vs Venture Capitalist. These are the terminologies we often hear in Start up communities.
Meaning
Angel Investors:
Angel investors are those who invests in an startup for his or her personnel satisfaction and investment purpose. Mostly, angel investor are single person but there small groups of people as well working as angel investor. They Usually invest in small startup by taking small proton of the company. Angel Investor has less investment amount as compare to venture capitalist.
Venture Capitalist
Venture Capitalist refers to companies or business houses that invest in entrepreneurial venture. they usually invest bigger companies which has already established in market for expansion of it. They have take persion from differnt depart before investment. Venture Capitalist has more fund which helps them to invest in different industry.
Angel Investors Vs Venture Capitalist
Following is the detail information
| Angel investor | Venture Capitalist |
|---|---|
| 1. Angel Investors Operates independently. | 1. Venture Capitalist refers to corporations or business. |
| 2. Angel Investor usually invests in early startup or business. | 2. Venture Capitalist usually invest in mature business. |
| 3. The investment is around 10 lakhs to 1 crore. | 3. The investment Amount is more than 1 crore. |
| 4. The decision making of angel investor is quick. | 4. The decision making of Venture Capitalist is lengthy. |
| 5. Angel Investor only offer financial assistance. | 5. Venture Capitalist helps in product or service development, branding, marketing, etc. |
| 6. Angel investor invest their own money in the form of angle investment. | 6. venture capitalist invest others money in the form of venture capital. |
| 7. The primary motivational factor of angel investor is help. | 7. The primary motivational factor of venture capitalist is to make money. |
Hence, these are the comparison of Angel and venture capitalist.
Other Important Links
1. BBS 4th Year Entrepreneurship Notes PDF: CLICK HERE
2. BBS 4th Year all subject Notes PDF: CLICK HERE
Frequently Asked Questions
a. Why are angel investors better? or Are angel investors risky? , What are the advantages of angel investors?, Is angel investing a good investment?
Ans: Following are the reasons:
- They invest in small startup which has high growth future.
- An angel investors is willing to take risk. They have greater risk tolerance capacity.
- Helps in further fund raising.
- They will provide mentorship to the startup
- Helps in Networking.
