Institition’s Innovation Council (IIC) of ITS Engineering College organized seminar on “Angel Investment/VC Funding Opportunity for Early Stage Entrepreneurs” on 29th August 2023.
The resource person Ankur Handa, Channel Head – Banking and National Distribution, Mirae Asset Investment Managers (India) Pvt. Ltd. discussed that an angel investor provides seed money for early-stage startups, usually in exchange for ownership equity if the idea takes off. Venture capital is money, technical, or managerial expertise provided by investors to startup firms with long-term growth potential.
An angel investor (also known as a business angel, informal investor, angel funder, private investor, or seed investor) is an individual who provides capital to a business or businesses, including startups, usually in exchange for convertible debt or ownership equity. Angel investors often provide support to startups at a very early stage (when the risk of their failure is relatively high), once or in a consecutive manner, and when most investors are not prepared to back them. A small but increasing number of angel investors invest online through equity crowd funding or organize themselves into angel groups or angel networks to share investment capital and provide advice to their portfolio companies.
Venture capital (commonly abbreviated as VC) is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or which have demonstrated high growth (in terms of number of employees, annual revenue, scale of operations, etc.). Venture capital firms or funds invest in these early-stage companies in exchange for equity, or an ownership stake. Venture capitalists take on the risk of financing risky start-ups in the hopes that some of the companies they support will become successful. Because startups face high uncertainty, VC investments have high rates of failure. The start-ups are usually based on an innovative technology or business model and they are usually from high technology industries, such as information technology (IT), clean technology or biotechnology.
