Venture Capital 101 : The Guide for Everything you Need

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Venture Capital 101 : The Guide for Everything you Need

What is Venture Capital?

Who Invests Where

Who Invests Where

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What Are

Angel Investors

Angels are rich individuals who use their own their own wealth to invest into startups

Most angels are come from rich families or were previous founders who sold their startups

The average angel check size is around 10-50k. Angels typically can make investment decisions quickly since they are in charge of their own money

Famous Angels: Jay Z, Charlie D’Amelio etc

Accelerators/Incubators

Startup accelerators support early-stage, growth-driven companies through education, mentorship, and financing.

Startups enter accelerators for a fixed-period of time, and as part of a cohort of companies.

Accelerators like Y Combinator gives companies who enter their cohort $120K for 7% of equity

Most companies that are in accelerator programs are usually in the pre-seed/seed stage

Notable Accelerators: YCombinator, Techstars, MuckLabs etc

Venture Capital Firms

Early stage VCs are institutions that invest capital in startups

Ran by general partners

Funded by limited partners

Have a strict thesis on what to invest in

Takes longer to do due diligence since decisions must be made by a team

Early stage VC firms typically invest more capital to startups at a later stage (post accelerator)

Notable VCs: Sequoia. A16z, NEA

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