Today, people have many business ideas. To execute those plans they need a capital amount to invest in their business. If they approach governments or other finance sectors. They need a surety document to arrange loans. But some organizations need only the idea of your business. If they are satisfied with your ideas, they give a capital amount without any documents. Those are ready to encourage the small-scale business. Those people are called angel investors, VCs (venture capitalists), etc.
Investors
Both the VCs and angel investors invest the money to help the small-scale business. Sarfraz Hajee one of the investors, advises the entrepreneur about how to choose VC for your business. He advised them to take time and analyze the terms and conditions of a VC. Explore the history of the investors. Some VCs may ask to give full control of your team, so Take your time to analyze and then sign a deal.
But here is some difference between the angel investors and VCs
- The angel investors invest their own money. However, the VC investing others capital amount.
- The investment amount of angel investors is small amounts, but in VC they invest large amounts.
- VC funds are from the particular firm with formal agreements. In angel investors, they invest personal funds so the formalities are limited.
- The VC always monitors their funding company’s daily activity and they suggest some decisions. While the angel investor’s interference is low.
- While the VCs are only invested in companies with clear strategies. Angel investors are ready to invest in innovative ideas.
Small-scale businesses can achieve success easily. Yet, investment is their only problem and it can be solved by the VC, angel investors, equity crowdfunding, etc. Mr. Sarfraz Hajee a private investor helps people with his funds. His main goal is to support small-scale businesses and encourage entrepreneurs to achieve their goals.