Q. 6 Write a short note on –
- Venture capital
- Angel investors
- Business incubators
Ans:
- Venture capital: Venture capitalists are investors that look for technology driven enterprises and companies that have a high growth potential. Some of the high growth potential sectors are Information Technology, Biotechnology, etc. The Venture Capitalists take an equity position in the company in order to help in developing a high-risk venture. They look for high return on investment when the business is developed, after which they may exit.
- Angel investors: Angel investors are generally wealthy individuals who invest in promising startups. These investors are very often leaders in their own fields, who invest money, ideas and experience in the promising ventures. They tend to finance the early stages of business.
- Business incubators: Business incubators, also called accelerators, are investors who support high-tech sector by giving support to them in various stages of development. There are incubation centers in academic institutions and industrial cooperatives as well. Incubation phase lasts generally for two years only.
| Source : New NCERT : Chapter 13 : Entrepreneurship : LINK |
| Extra Info : |
