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Angel and Venture Capitalist

In: Business and Management

Submitted By mitzyumim
Words 400
Pages 2
Angel and Venture Capitalists
Mildene Faulkner

Angel vs Venture Angel investors and venture capitalists operate in the same market, but they both provide a different type of service. The two depend on each other to make business work. These types of investors would be looking to make money fast by investing in someone else’s idea. Entrepreneurs need the financial backings to start up their business and constant set of investor to keep it going thru the start phrase. With Angel investors and venture capitalists, startup businesses had a sure change on thriving in a tough economy.
The person who comes up with the idea to start a business would usually need a sales pitch. They would tend pitch the idea to a group of business people who had money. Angel investors would be in charge of the funding the initial startup of the business. Angel investor usually invests their own to startup a new business. Angel investments are high risk and usually are subject to dilution from future investment. Angel investors also require a very high return on their investment. Angel investors are usually often retired entrepreneurs or executives, who may be interested in angel investing for reasons that go beyond pure monetary return. In order to really keep the business going, angel investors seek venture capitalists to provide more financial backing.
Venture capitalists are a group of business that provides funds to early stage, high potential, high risk growing startup companies. The venture capitalist makes money by owning equity in the companies that they invest in. Venture capital is attractive for new companies with limited operating history that are too small to raise capital in the public market. Venture capitalists are typically very selective in deciding what to invest in. Venture capitalists nurture their companies in which they invest, in order to increases the

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