Venture Capital funds, Private Equity and Angel funds
Venture capitalist comes at a growing face of a company contribute a seed capital with a low amount of investment in the potential ideas of people. Invest in some limited sources like biotechnology, medical services, communication, electronic components, and software companies, invest in startups and works on highly risky projects due to there are various chances of failure of startups.
Private equity comes with an huge amount of investments in already setups businesses earning good profit at their grown level, attracts with stability oriented ideas irrespective of their sector
Angel funds are the sub category of venture fund in which investors are generally individuals and body corporates invest in startups at very initial stages before execution of their ideas perfectly, are more risky than venture capital funds
Basis | Private Equity funds | Venture Capital funds | Angel funds |
Investees | An type of equity that invest in private companies whose share are not traded on stock exchanges or in public company with an intention to buyouts | An AIF that invest primarily in unlisted securities of early stages or startups of unlisted entities | An sub category of VCF under Alternative investment category 1, Invest in startup levels at very initial |
Limit of investment | $10 million and more | 1 million$ to 5 million$ | 25 lakh to 10 cr. |
Stages | At maturity state of | At the growing startup | Early level startups |
Fund raise | From retail and institutional and accredited investors | From institutional investors | Through private placement from individuals and body corporates |
Focus | Profit oriented | Sales oriented | Return specific |
Invest in | Any sector | In biotechnology , medical services , communication , electronic components, software companies | In VCF undertakings
Having turnover of less than 25 cr. |
Risk | Moderate | High | High |