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2023 | OriginalPaper | Chapter

Business Angels and Venture Capital

Authors : Gema Albort-Morant, Carlos Sanchís-Pedregosa, David Perea El Khalifi, Ana I. Irimia-Diéguez

Published in: New Frontiers in Entrepreneurial Fundraising

Publisher: Springer International Publishing

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Abstract

Among the many formulas that exist for financing a business project, two of the most widely used by entrepreneurs today are business angels (BA) and venture capital (VC). This chapter sheds light on the interaction between these sources of funding. Both financing options played an essential role for the growth of start-ups even before the financial crisis. In particular, the main goal of this chapter is to provide the reader with an accurate understanding of both sources of financing before making an investment decision. The chapter shows the concept, operations, and growth expectations of BA and VC and a subsequent comparison between the two methods. Overall, this chapter provides a more fine-grained understanding of the role that BA and VC investors can play in the process of creating new ventures. As the main takeaways of this chapter, it is expected that entrepreneurs will learn to successfully find the financing formula that best suits the characteristics and urgencies of their project and that, in this way, their company will develop or continue to grow.

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Title: Business Angels and Venture Capital
Authors: Gema Albort-Morant
Carlos Sanchís-Pedregosa
David Perea El Khalifi
Ana I. Irimia-Diéguez
Publisher: Springer International Publishing
Book: New Frontiers in Entrepreneurial Fundraising
Print ISBN: 978-3-031-33993-6

Electronic ISBN: 978-3-031-33994-3

Copyright Year: 2023
DOI: https://doi.org/10.1007/978-3-031-33994-3_6