Follow Us :

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

Author Bio


My Published Posts

Cost Audit and Forms Gold in India Stroke of China In Corona View More Published Posts

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Post by Date
July 2024
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
293031