To start any business what is the main thing which you need? Ya I know you need an idea but what else? Yes you are right its money, without money your all ideas, planning are worthless because to start any business you need money, without money you cant do anything. Any entrepreneur who is looking to start his or her business then he or she can get money from 2 main sources i.e Angel Investing or, Venture capital. Let us take a look on both of them one by one :-
Angel investing is one of the most oldest method of investing money in any business, Angel investing is consist of 2 words, lets start from back
Investing, we all know this words, we are putting our wealth in something for the propose of getting returns in future for long period of time,
Angel, I know you must be thinking beautiful girls who act as messenger of God, well here Angel is almost same. Angel is the individual who invest his money in any startup in return of some stake or shares so that he can get returns in future. They are like real angel for startups as they give their money
So Angel Investors are individuals who invest their money or wealth in any start up business in return of stake, so that he can earn over a period of time.
The work of VC is also same, they give their money for small startup business but it’s a group of people mostly expert people who mainly invest others money not their own one.
They go through the detail investigation of business and try to find out what are the risk in this project, as they are investing other’s money so they take extra care too. VC also take part in companies meeting and can affect the decision of company.
Difference Between Venture Capital Vs Angel Investors
Here are some difference between them :-
- VC invest others money in startup, generally money of group of people, but Angel invest their own hard earning, they invest their own money.
- There are large number of people in VC, but Angel investor is the single person.
- There is very high degree of professionalism in VC as compared with Angel,
- VC can invest high amount of money as compared with Angel,
- VC must take part in board of meeting, but Angel are not interested in board meetings.
How To Start Business Without Venture Capital Or Angel Investors?
If you want to start business without Angel or VC then also you can do, as both of them ask your companies share in which not everyone is comfortable then here are few methods from where you can generate money for startups.
- Your Savings :- Just pick up you piggy bank and look how much money you had saved till now, many times you can start business from your savings too, so its good idea to look for your savings,
- Credit Cards :- Yes, its too one of the biggest source after founder’s saving.
- Friends And Family :- If you don’t get enough money from your savings and credit cards then you can ask your friends and family to lend some money to you so that you can start business.
- Banks :- Bank is too most important source of money but problem with bank is that they ask for some security, but young company don’t have any security.
So you can try out these methods to start your business if you are not interested in VC or Angel.