Venture Capitalists (VCs), or Private Equity firms as they are increasingly becoming known, invest in businesses and take a share in the same way as Angels. VCs typically fund businesses with a turnover in excess of a million a year although more and more, they are investing in startup technology companies who have previously received Angel funding.
They will expect a major say in how the business is run which could include mandatory board appointments including a CEO, stringent capital expenditure plans and putting in place their own management team. The investment is likely to come in stages based on milestones of achievement at each stage. Similar to Angels, VCs look for an early exit, but it will normally be via a trade sale or listing.
If you have a high risk high tech venture that requires expert investors and a need for a large amount of capital (and you don't mind reporting to someone else) this is possibly the best option for rapid growth.
Click here to find out how Venture Capitalists differ from Angel Investors.
Find out more about other funding methods.