As described in the Unit Outline these topics are quite vast and with this one in particular I had difficulty beginning so I referred back to my work shop notes and that’s how I will begin! The following two paragraphs are in reference to Workshop #7 (McGee (2012).
Angel Investors make
contributions form their own accounts and often in groups, and often into
fields that they know well. They like to know who else contributes to you and
their investments can start at $50K, reaching up to $300K. Their contribution secures
them a seat at the table, and begins in the early stage of business when you
need help. Their seat at the table gives them the right to have a say and they
often expect three to ten times upward in their investment, in a period of
three to five years. Intellectual Property is important to Angel Investors and
they “won’t touch you without it!” (McGee 2012)
Venture
Capital is un-emotional institutional
money as opposed to that of an individual’s, and is nearly always a public
listing. They manage large funds of
investment, and are in it for the return. The contribution differs throughout
the world and in Australia in particular the contributions are $5ooK minimum,
to above and beyond $1M (yikes!). Their grand contribution places them at the
head of the table, with a large amount of your equity but they do want to make
it work. Topping the Angel Investor they are wanting from five to ten times the
investment followed by exit in a period of five to seven years. There are few
Venture Capitalists in Australia, but Micro Venture Capitalists are slowly
investing in Australia.
Professional vs
nonprofessional; Venture Capitalists generally belong to large firms and to
become a member of such is a gruelling process but a job none the less, where
as Angel Investors are more looking to invest their personal savings into a
feasible venture.
Other People's Money vs Own Money; as stated during workshop seven, Venture Capitalists are funded by large corporations and institutions, which may limit their choices of investment. Angel Investors have a great deal of say where their money goes, and will often contribute to community needs and other such organisations.
Other People's Money vs Own Money; as stated during workshop seven, Venture Capitalists are funded by large corporations and institutions, which may limit their choices of investment. Angel Investors have a great deal of say where their money goes, and will often contribute to community needs and other such organisations.
Comparing the two is like comparing apples and oranges
because they are two very different types of investor, each suited to different
individuals/organisations at different stages.
For lack of a better conclusion, here is a list that side
tracked me horrendously, of 105 women that are Angel and Venture Capital
Investors!
http://tech.co/femanomics-105-women-in-venture-capital-and-angel-investment-2012-05#.T7Ke-J9Yu6-
References:
McGee, Polly (2012) Workshop #7.
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