Informal risk capital market

By: Vageesh R M Varsha S karekar

Risk: An element of uncertainty or chance, a loss associated with an event. In other word risk is the exposure to loss .
Informal risk -Capital market: It is the most misunderstood type of risk capital it consist of virtually invisible group of wealthy investors, often called business angels , who are looking for equity type investment opportunities in a wide variety of entrepreneurial ventures. Characteristics of informal investors: Demographic pattern and relationships Investment record Venture preference Risk or reward expectations Reasons for rejecting praposals

Overview:
Business Angels: A name of individuals, who are looking for equity-type investment opportunities in a wide variety of entrepreneurial ventures.

Informal risk capital market raise second and third round financing from professional venture capital firms or the public equity market.
This contains largest pool of risk capital in the United states. Private placements

Thank you