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Angel Investing And Venture Capital Research

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INVESTORS 2
Angel Investing and Venture Capital Research
Before tackling these queries, it is important to be able to understand clearly, who are an
angel investor and a venture capitalist. An angel investor is a businessperson who provides a
businesses’ start-up capital, normally it is in exchange for ownership equity or a convertible debt
while a venture capital is a financing form that firms provide to companies that show high
growth potentiality. Notably, a good example of a venture capital firm is the ff venture capital
whereas that of the angel investment group is the Angel Capital Association (ACA). They can
both be defined as risky entrepreneurs.
(1)
Firstly, the main role of the ACA is to bring together venture capitals and angel investors
who have suffered separation in the past. The requirement of being an angel investor is to be in a
position to acquire securities’ laws that greatly protect them. Angel groups normally do not have
a fixed amount of capital to invest in, this is because the ranges of amount can hike from a
thousand dollars to a million dollars since the angel investors are extremely high-risk bearers.
This is with respect to dilution that creeps from the future rounds of investments hence they need
a big rise in return on investment. During the early stages of the businesses, angel investors opt
to invest more in this stage because if it is not well taken care of they may end up losing a great
percentage of their capital (Association, 2016).
(2)
Secondly, the ff venture capital being the biggest technology firm it majors in providing
the early and seed stages funding to companies of technology, venture capital are able to invest

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Running head: INVESTORS 1 Investors Name Instructor Course Date INVESTORS 2 Angel Investing and Venture Capital Research Before tackling these queries, it is important to be able to understand clearly, who are an angel investor and a venture capitalist. An angel investor is a businessperson who provides a businesses’ start-up capital, normally it is in exchange for ownership equity or a convertible debt while a venture capital is a financing form that firms provide to companies that show high growth potentiality. Notably, a good example of a venture capital firm is the ff venture capital whereas that of the angel investment group is the Angel Capital Association (ACA). They can both be defined as risky entrepreneurs. (1) Firstly, the main role of the ACA is to bring together venture capitals and angel investors who have suffered separation in the past. The requirement of being an angel investor is to be in a position to acquire securities’ laws that greatly protect them. Angel groups normally do not have a fixed amount of capital to invest in, this is because the ranges of amount can hike from a thousand dollars to a million dollars since the angel investors are extremel ...
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