Angel Investors & Venture Capitalist is the best source to raise capital for business. They provide money for high growth potential start up companies.
Angel Investors & Venture Capitalists are professional Investors & Money Managers who provide money for high growth potential startup companies under very special arrangements mostly in exchange for ownership equity. They also provide very valuable strategic management advice & share their experience.
Angel investment is always a good option for startup companies as new businesses are unable to access other sources of funding including from banks & other financial institutions. Angel investment is a common second round of financing for start-up companies, the first being from family & friends. Usually the amount of financing from family & friends will be very much limited & that is where angels come into the picture & fill the void. Research all over the world shows that angel-funded Companies are less likely to fail than companies that rely on other forms of initial financing. One of the main advantages with the angels is that the entrepreneurs can discuss & pitch in their business propositions across the table on a one-on-one basis.
Venture capital (VC) is a form of equity where the funds or initial capital is provided to high growth potential startup companies by private individuals or by private companies under a very special arrangement. This is a very important source of funding for startups that do not have access to capital markets. Venture capital is the most practical and an important source of funding for new startup companies. Venture capital comes in when the conventional sources of finance are hard to get. The new companies do not get bank loans or debt finance since their very existence itself is for a few years or few months & they have very limited operating history both in banks & as well as in public.
These Angel Investors & Venture Capitalists are very very selective professionals & invests in businesses or projects which can give them very high returns. They need to be convinced about the future great potential, only then they would consider investing.
