Hi Naman,

Venture Capital Investment normally refers to investment in start-up companies that have very different ideas for doing business.- which may be even disruptive in nature. This companies are normally focused on technologies, bio-techs etc. Moreover, Equity is normally used to fund this companies.

However, if we consider Private Equity Investment - it refers to investment in companies which are in mature stage. All types of industries can be considered for Private equity investment. Even debt is used for investment in this type of companies.

Both Private Equity Investors and Venture Capital Investment is done with a view to fund the business, have some share in the business, enjoy the returns and then exit after few years.

Now if we talk about angel investors, these are mainly the wealthy individuals - may be your friends, relatives etc. who help you to fund your business from their own fund.

Angel investors use their own fund to invest whereas venture capital investors and private equity investors use the pooled fund from individuals, institutions.

Money provided by investors to start-up firms and small businesses with perceived long-term growth potential. This is a very important source of funding for startups that do not have access to capital markets. It typically entails high risk for the investor, but it has the potential for above-average returns.
Venture capital can also include managerial and technical expertise. Most venture capital comes from a group of wealthy investors, investment banks and other financial institutions that pool such investments or partnerships. This form of raising capital is popular among new companies or ventures with limited operating history, which cannot raise funds by issuing debt. The downside for entrepreneurs is that venture capitalists usually get a say in company decisions, in addition to a portion of the equity.