Business angels are individuals, often successful business people, who are using their own funds to invest in businesses they like, whereas venture capitalists manage the pooled money of others in a professionally-managed fund.
Angel investors and venture capital funds focus on businesses in different life cycles.
How is an angel investor different from a venture capitalist?
Angel investors are wealthy individuals (or groups of wealthy individuals) who invest their own money into companies. Venture capitalists (VCs) are employees of venture capital firms that invest other people’s money (which they hold in a fund) into companies.
What is a major difference between an angel investor loan and a venture capitalist loan?
However Business Angel Investors will be individuals, often successful business people, who are investing their own personal funds into a potentially rewarding business opportunity. Whereas Venture Capital is invested by firms or companies that use other people’s money.
What do you mean by angel investor?
Definition: An individual who invests his or her own money in an entrepreneurial company. Originally a term used to describe investors in Broadway shows, “angel” now refers to anyone who invests his or her money in an entrepreneurial company (unlike institutional venture capitalists, who invest other people’s money).
What exactly is a venture capitalist?
A venture capitalist (VC) is an investor that provides capital to firms exhibiting high growth potential in exchange for an equity stake. This could be funding startup ventures or supporting small companies that wish to expand but do not have access to equities markets.