1.VC funding
Venture capital funds are investment funds that manage the money of investors who seek private equity stakes in start-up and small- to medium-sized enterprises with strong growth potential. These investments are generally characterized as high-risk/high-return opportunities. In the past, venture capital investments were only accessible to professional venture capitalists, although now accredited investors have a greater ability to take part in venture capital investments. 1. Angel Funds Angel funds are pools created by high net worth investors or companies to invest in any new venture that they find interesting and profitable to grow in future. They are subset of venture capitalist that focus mainly on start-ups whereas VCs fund in later stage of development. The investment is provided in return for convertible debt or ownership equity. Typical value of investment is $10k to $1mn.
2.Seed Funds
This is the funding received in the very first round of investment. Seed funding is a formal process than angel funding. It is a scenario involving professional investors and a formal process of funding.
3.Angel Networks
An angel network is simply a group of angel investors who organise themselves in a formal setting to invest collectively. This help them achieve more operational efficiency and provide mutual support. Most angel networks focus in areas of experience although they are usually open to investments in other areas.
4.Venture Debts
Venture debt applies to debt financing offered to products in early and growth stage venture capital backed companies. It is provided by specialised banks or non-banks to fund working capital or capital expenses. It results in less equity dilution for entrepreneurs and investors and does not require a valuation to be set for the business.
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