AUGUST 20229Funding the transformation of a technical breakthrough into a commercial success is one of the most significant challenges facing the bio entrepreneurNearly one-third of angels choose to invest in a company based on its connection to critical social issues. While some investors seek financial compensation, not all are primarily interested in the money. Some want a different kind of return: the ability to solve the world's biggest challenges through the businesses they fund. "Having an impact does matter, especially when it comes to investing in things like curing diseases, feeding a growing global population, fueling the planet with clean energy, and even taking us into space". Science and technology startups especially should note that when raising capital, they should emphasize the impact of their solution besides potential returns to investors.Angel investors want to understand how they are financing, especially startups in the tech field. Since angel investors are investing their own money, building their trust and establishing a relationship with them are crucial to gaining their support. More than 50 percent of respondents claimed this as one of their top reasons for investing, and 94 percent as it was helpful to have subject-matter experts explain the technologies within their company before investing. Many choose not to invest in specific businesses due to their inability to grasp technology.Both Angels and venture capital funds invest in private firms through what is termed `private equity, often referred to as `patient money. It is called patient money because investments in private companies are usually relatively illiquid, and the private equity investor has to wait for a liquidity event, typically a trade sale or an initial public offering (IPO), to harvest their money. While both parties participate in similar investments, although often at different stages in the venture growth, the venture capital sector is better organized, more rigorous in approach, and much more standardized in the conditions under which it invests.
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