Angel Investing & Venture Capital
You have founded a new company, or you are thinking of founding one. Or you are a university researcher whose results suggest you are on the way to a great drug, drug delivery system or medical device. You believe in yourself and your product. You are confident that by filling an important gap you will contribute to the economy and make a good profit in the near future. But you do not have enough capital to reach your goals, because making products in medical biotechnology requires high-tech infrastructure. What can you do?
This problem is far more common than you might think and exists all over the world. Developed countries that started this work before us have found solutions. Companies in this position have two main options: angel investment and venture capital. Neither is yet fully established in Türkiye, so one of MEBID’s aims is to explain both concepts to industry and researchers and to make them routine practice.
First, let us look at the difference between the two:
- Angel investors usually work alone, while venture capitalists work within a firm.
- Angel investors invest smaller amounts than venture capitalists, usually from their own personal capital. Venture capitalists make large investments through their firm.
- Their expectations of the companies they invest in also differ. Angel investors do not expect much from you. They can help if you ask, but how involved they become usually depends on your wishes and their own way of working. With venture capital, financial support also means they are investing in turning you into a successful company, so they will stay alongside the company at every stage, offering support and guidance.
- Angel investors usually back new, small companies, while venture capitalists can support both young companies and more mature companies that have been on the market longer.
