Page 94 - MICROHUB Handbook - ENGLISH
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3. Venture Capital: Professional investors
known as venture capitalists make substantial
financial commitments to businesses in
exchange for stock stakes. In order to help
the firm grow swiftly and realise a fair
return on their investment in a reasonably
short period of time, they often invest in young
companies with significant growth potential.
Venture capitalists often provide both money
and experience, but you must be willing to
give up a sizable portion of your company.
4. Business Angels: A private individual who directly
invests some of their assets in start-up and expanding
private firms is known as a business angel.
They are typically high net worth individuals
with prior business experience.
Business angels can make individual investments
or participate in syndicates, where one angel often
assumes the leadership position. In addition to funding,
they offer contacts, company management expertise,
and talents. Angel investors with experience are aware
that they might have to wait for a return on their
investment. As a result, they may be a reliable supply of
"wise and patient" capital.
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