Both Venture Capital Funds and Angel Investors invest on the basis of taking a stake in a business, but there are some differences

  • Get invest in early stage ventures or start ups where they see a potential for the company to grow, they complement the family and friends’ money. Funds invest in later stages of the company – beyond the stage of proof of concept, and at levels that are beyond the level of angels investing. Even the focused on early stage investing start at USD 1.5 mn, whereas Get Investors could start at Rupee 10,000 and go right up to Rupee 1 mn.
  • Venture Funds are targeted by their investors to invest in specific areas / sectors. Get investors look at investing in diverse domains, and would consider investing in any area where some of their members have expertise.
  • Venture Funds usually have a life of 7 years and most investments are made in the first 3 years. After the investments are made, VC funds give direction and look for an exit through an IPO, Strategic sales, M&A. Get investing continues – individuals invest as long as they wish. They, however, look at a 2 to 3 year exit and the most common exits are strategic buy outs / mergers & acquisitions.