TY - CHAP
T1 - Business Angels and Venture Capital
AU - Albort-Morant, Gema
AU - Sanchís-Pedregosa, Carlos
AU - Perea El Khalifi, David
AU - Irimia-Diéguez, Ana I.
N1 - Publisher Copyright:
© 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.
PY - 2023
Y1 - 2023
N2 - 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.
AB - 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.
KW - Business angels
KW - Entrepreneurship
KW - Venture capital
UR - http://www.scopus.com/inward/record.url?scp=85169066544&partnerID=8YFLogxK
U2 - 10.1007/978-3-031-33994-3_6
DO - 10.1007/978-3-031-33994-3_6
M3 - Chapter
AN - SCOPUS:85169066544
T3 - Contributions to Finance and Accounting
SP - 77
EP - 90
BT - Contributions to Finance and Accounting
PB - Springer Nature
ER -