Discussion:
Venture Capitalists and Angel Investors
• Venture Capitalists (VCs) need deal flow, which often comes from angel investors. Yet, information in the textbook makes it seem like VCs often dislike angel investors. Examine the reasons for potential conflicts between angel investors and VCs. Propose two ways to mitigate these conflicts.
• Determine three ways that conflicts between angel investors and VCs can impact the operations of a start-up company. Assess the impact that conflicts might have on the value of a business in its early stages.