ANGEL INVESTORS Angel investors are affluent individuals who provide capital for start-ups in exchange for ownership equity or convertible debt. These investors often bring not only funds but also valuable advice, mentorship, and industry connections to the table, helping start-ups navigate the initial challenges. VENTURE CAPITAL Venture Capitalists (VCs) are professional groups that manage pooled funds from many investors to invest in start-ups and small businesses. Unlike angel investors, VCs often come in when the start-up has a proven business model and is poised for growth. They usually offer larger amounts of funding in exchange for equity and a seat on the board.v CROWDFUNDING Crowdfunding platforms ( a startup favourite) like Kickstarter and Indiegogo allow start-ups to present their ideas to the public, and people who are interested in the project can pledge money to help fund it. This method not only raises capital but also validates the market demand and builds a customer base, and crucially allows direct feedback from potential customers in terms of product development. v 1 2 3 Finance Monthly. Business 37
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