Angel Investors’ and ‘Venture Capital’ are the two sources of raising finance for an entrepreneur.
Angel Investors’ and ‘Venture Capital’ are the two sources of raising finance for an entrepreneur. Explain the concept of both the sources stating one distinguishing feature of each.
1 Answers
Angel Investor is an affluent individual who provides capital for a business startups and early stage companies using a high-risk, high-return matrix usually in exchange for convertible debt or ownership equity. Venture Capital is a type of a private equity capital provided as seed funding to early stage, high potential, high risk, growth up companies/entrepreneurs. Distinguishing Feature: Angel investors participate in the management of the business but venture capitalists do not take part in the management of the business.