Fundraising – Angels vs. Venture Capital Investment

A price difference, what you see in the press

, with the credit crisis and a recession looming, there's too much money at this time in the world, too few investment opportunities. Remember that the depression of 1930 has created more Millionaires than at any other time (always) and now will be different. Many wealthy people, who diversify their portfolios of traditional asset as a hedge of protection against stock marketVolatility. In the past, in times of recession, the two major classes of assets that exceeded the traditional markets have been organized, and private equity firms have taken over. So when so much capital in the world today, because it is so difficult in the capital they need?

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The most likely answer to your question is that fund managers only small amounts for research, risk capital or hedge. After all, is relative. When a CV has dozens Millions of pounds of investment in private equity Why invest in 100 or 200 of start-up? Who would manage and all these investments and entrepreneurs? Its very difficult to handle at once! Therefore, invest in relative terms, that would probably be prohibitive for them, though probably receive a total of more value.

Hunting VCs vs. Angels

Venture capital firms are a means to raise a total of serious> Capital, but as you can imagine, there are traps in May. The greatest loss of capital is the mark of 51%. In addition, the final vote on "the right to sell" even more likely are legally entitled to them. VCS, is the primary motivation "ROISAP '(return on investment as soon as possible) VCS is always a desperate desire to return each case as soon as possible. And no matter where it comes from this statement that you or someone from outside to obtain a huge bonusrisk and responsibility of their investments.

More attractive for start-up entrepreneurs seeking a business angel investor, the type of work involved, or take a capital and a degree of guilt (or usually a combination of both affected) in exchange for their investment. You can also use your table, which will use the platform to manage their investments and advisory services. Sometimescan play an active role in the organization and start the connection at full speed. This freedom can not afford an organization the ability to key employees and to expand quickly to adjust its business model to the point where research is placed on a larger scale, the second round of financing at a reasonable cost, based on equity has proven experience in the organization.

Other benefits to the contractor access to knowledge and networks of business angelsmay be involved. In addition to the growing trend means the union of angels, the sole proprietor may be significant capital costs (well above $ 500K mark) into a single financing transaction without increasing negotiate separately with individual investors .

http://www.capitalinvest.equitylinesite.com/2009/11/21/fundraising-angels-vs-venture-capital-investment/

Fundraising Angels vs. Venture Capital Investment

By: winston

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