Guaranteed Returns
Guaranteed Returns is a promise of a specific financial return on an investment, rare in venture capital and angel investing due to the risky nature of startups
Benefits
Promising guaranteed returns can attract investors. But in startups, the focus is on potential growth rather than guarantees.
Frequently Asked Questions
What is the return of angel investors?
Angel investors don`t usually get guaranteed returns. Instead, they hope for a big payoff if the startup does well.
What is the difference between a venture capitalist and an angel investor?
Venture capitalists are part of firms that invest big money into startups. Angel investors are individuals who invest their own money. Both take risks hoping for high returns.
What do angel investors ask for in return?
Angel investors may ask for a share in the company. They aim for a return on their investment through the company`s growth or sale.
Key Takeaway
Guaranteed returns are rare in startup investing. The aim is to invest in potential growth, knowing the risks.