Startup 101: Angel investors, Venture Capitalists, or Angel Groups???

Startup 101: Angel investors, Venture Capitalists, or Angel Groups???

Sophie Nguyen

“The relationship between startup and venture is similar to marriage. It is important to find the right partner for you”

At a certain level, the ultimate goal of your startup must be starting to grow. You may start to think about investors, maybe an angel or venture, who will enhance your startup’s advantages to break the tipping point. Understanding different sources of resources can help you to find the right investors for your startup. There is no difference between having the right partner in business and in a marriage where both of you must sit down together and sign the contract. Depend on your partner, it can be full of happiness or it can be awful. 

Other than the loan, money from family, friends and your own savings, there are four sources of investment for your startup: Angel investors, Venture Capitalists, Angel Groups or Syndicates

Angel investors

The first person when all startups look for is an angel investor.

This term refers to an individual that accrues significant wealth and seeks to invest in the early-stage of startups in exchange for ownership equity or convertible note. However, angle investors focus on helping startups take there first step rather than getting monetary returns from startups.

Angel Groups

Several Angel Investors form an Angel Group. They are power in number. Thet can sign large checks, get the better term and leverage larger networks to help startups

Venture Capitalists

Venture Capitalists, which manage a large pool of money from different sources, partners,

 invest in startups or companies with high growth potential in exchange for an equity stake. Comparing to Angel investors, Venture Capitalists are willing to take more risk of investing as they can earn a massive monetary return if these startups or companies succeed. As seeking a large and substantial return on investment (ROI), Venture Capitalists usually look for a project with a strong management team operating in a large potential market with a unique product or a service with strong competitive advantages.

Connect with us

Email support@uplight.com.au
We will come back to you ASAP!

Message us now!
Monday - Friday
8am - 5pm