Can anybody explain me what is venture capitalistic?

Which type of investors they are like angel, seed, series and why did they liquidating preference? Does another investors also enjoy the same priorities?

1 Answer(s)


Venture Capitalists are professional investors who provide capital to entrepreneurs. Some examples are Accel Partners, Kleiner Perkins, IDG etc.

Angel investors provide very small sums of money (like 20 lacs)and they are individuals. VC's provide large sums (like 15 crores) and they are institutional companies.

VC's always get Liquidation preference. Angels sometimes get them. This is for downside protection. If the company is going to get sold for a less amount then liq.pref makes sure that the VC;s atleast get back atleast their initial investment,.