Can anybody explain me what is venture capitalistic?
1 Answer(s)
Binny
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,.
May 25 2013 09:33 AM
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,.