Companies usually begin with little more than a dream: a concept, an idea, or an invention. But while hope, inspiration, and some personal savings can be the promising seed for a startup, it often takes much more to grow a concept into a thriving company.
Long before a startup company can borrow large amounts of money from a bank or raise large amounts of money by going public, alternative sources of funding are needed. And that’s where angel investors and venture capital investments come into play. One hundred years ago, most venture capital came from just a few wealthy families like the Rockefellers. Today, investors who wish to participate in VC investments often do so through managed venture capital funds. Professional angel investors typically participate in angel groups or angel investor networks.
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To read the original article: How Venture Capital Helps Drive the Startup Economy - Business 2 Community
