Venture investing is the financing of startups and small, early-stage businesses that look promising and are believed to have long-term growth potential 🚀
Typically, venture investing has been done by two types of investors:
- Venture Capitalists 💼
- Angel Investors 👼🏽
What are venture capitalists?
Commonly, VC's invest after a startup has grown and seen achievements. They provide capital at later stages of growth to help the venture grow and acquire market share, and they pool resources to make large investments 💰
What are angel investors?
Technically encompassing all investments in the venture asset class, what sets angels out is that they are usually solo entities. They typically invest in earlier stages, or when the venture has at least developed a prototype or Minimum Viable Product, and they tend to make smaller investments ☝️
Evolution of Angel Investing 💥
Angel investing used to be elite and selective since considerable wealth was required to invest under the law. However, through changes to the law, the pool of angel investors has grown to include 98% of the population.