For investors vs companies
Capital is needed at different stages to enable businesses to grow and create growth and jobs. Capital can be provided in various ways, for example through bank loans or venture capital. Depending on the stage at which a company is located, different forms of financing are available.
An investor is a person or entity that provides funds to support a company or project, with the expectation of receiving a return on their investment.
Business angels are wealthy individuals who invest their own money in start-ups or early days in exchange for an ownership stake. They often provide not only funding but also mentorship, advice and contacts to help the company succeed.
Venture capital firms are companies that provide finance to start-ups and small businesses that have high growth potential but are not yet sufficiently established to obtain funding from traditional sources, such as banks. In exchange for the funding, the venture capital firm typically gains an ownership stake in the firm and works closely with the founders to help them grow and scale their business.
Buyout companies are companies that specialise in acquiring a controlling stake in other companies, often with the goal of restructuring and improving their operations to increase profitability. These companies typically use a combination of debt and equity to fund their acquisitions and may also bring in new management teams to oversee the operations of the acquired companies. The ultimate goal of a buyout company is to sell the acquired company at a profit, usually within a few years.