There are many different types of investors that you might not know about. There is the angel investor, who invests in early-stage companies and puts a lot of time and money into their company. The seed investor invests in startups before they become big businesses, typically with more modest investments than angel investors. Venture capital firms invest in specific industries or geographic regions while private equity firms look for undervalued companies to buy and turn around.

Crowdfunding is a great way for investors and entrepreneurs to connect, and crowdfunding platforms like Kickstarter and Indiegogo help startups find the funding they need.

Types of Investors

There are many different types of investors that you might not know about. There is the angel investor, who invests in early-stage companies and puts a lot of time and money into their company. The seed investor invests in startups before they become big businesses, typically with more modest investments than angel investors. Venture capital firms invest in specific industries or geographic regions while private equity firms look for undervalued companies to buy and turn around. Crowdfunding is a great way for investors and entrepreneurs to connect, and crowdfunding platforms like Kickstarter and Indiegogo help startups find the funding they need.

Angel Investor

An individual who contributes money (usually between $500-$100k) to finance high-risk start-up projects due to high potential for profitable returns

Seed Investor

An early-stage investor provides capital to a company in its very early stages of development, often before the founders have fully developed their product or service concept. This type of investment is typically lower risk as it comes from family and friends rather than professional investors.

Venture Capital Firm

An organization that invests money into companies with high growth potentials but which are too risky for conventional banks to fund due to the long gestation period until any return on investments can be seen. They will also expect a much larger share in ownership compared to other types of funding. These firms tend to invest within narrow industrial sectors where they have industry contacts and expertise

Private Equity Firm

These organizations seek out undervalued companies that can be bought for less than their intrinsic value. They then restructure the companies, often dismissing workers and selling off assets to repay any debts that are owed (including their own investment), before reselling them with a profit

Crowdfunding

A method of funding a project or venture is by raising many small amounts from a large number of people, typically via the internet. These types of investors often have more modest investments than angel investors, but can come from anywhere in the world and are usually interested in start-up projects that may not interest other forms of investment

  • Kickstarter – an American public-benefit corporation based in Brooklyn, New York which has built a global crowdfunding platform focused on creativity. Kickstarter’s stated mission is to help bring creative projects to life
  • Indiegogo – another online international crowdfunding website where entrepreneurs get access to capital for their business idea without giving away equity or control over their company. The promises “anyone” with an idea or project can raise funds on the site.

Investor Trends 2022

As more and more investors flock to crowdfunding, angel investing is becoming a thing of the past. Venture capital firms are still relevant when it comes to funding companies that need large sums of money from professional investors in order for them to grow. Due to this, public companies are moving digital and they are having an investor section on their IR website to facilitate the investor to know more about the company. However, there are many new types of investors that have emerged in the last few years. Few of them are mentioned below:

Crowdfunding Investors

Crowdfunding has taken off since 2012 when Kickstarter raised over $100 million for various projects worldwide. Since then, crowdfunding sites like Indiegogo and GoFundMe have become popular platforms to fund or launch a project. As crowdfunding continues to grow in popularity, we can expect more and more investors to look for the next big thing on these platforms.

Crowdfunding is not just limited to investing money into a project or company; it has also been used as an alternative form of financing known as reward-based crowdfunding where backers receive some sort of compensation such as early access or a discounted price for their support.

Family Offices

Family offices are typically private investment firms that manage the wealth of high net worth individuals and families, but some family offices have started to use alternative investments such as private equity funds. By diversifying outside of traditional portfolios, family offices will continue to grow in popularity since individual investors are not always ready to invest in alternative investments due to their high risk.

Angel Investors

Angel investors are usually wealthy individuals who provide funding for new companies or projects at the earliest stages of their development, which is around the time when most traditional investment firms shy away from investing. As angel investors continue to back more and more promising startups, we can expect to see many high-growth companies coming out of angel-funded startups.

Micro VCs

Micro venture capital firms are private investment firms that typically focus on funding later-stage companies or projects who need additional financing in order to reach their full potential. Many micro VC funds will provide an opportunity for entrepreneurs and investors to network together within their network.

Wealth Managers

Wealth managers are typically financial advisors that manage portfolios for their clients, but some of these wealth managers have started to provide alternative investment opportunities through funds or private placements in order to diversify their client’s portfolios. By adding more asset classes into a portfolio, it will be easier for investors who want to find a balance between risk and reward.

Family Investment Offices

Family investment offices are typically private firms that manage the wealth of high net worth individuals or families, but some family offices have started to use alternative investments such as equities funds in order to diversify their client’s portfolios. By adding more asset classes into a portfolio, it will be easier for investors who want to find a balance between risk and reward.

Hedge Funds

Hedge funds are typically large investment firms that manage the wealth of very wealthy individuals, but some hedge funds have started using crowdfunding platforms like Indiegogo in order to fund their newest ventures. By funding companies on different types of crowdfunding platforms, hedge funds will continue to diversify their investments and gain access to a wider range of startup companies.

Mutual Funds

Since mutual funds take money from many different investors in order to buy into various types of stocks, bonds, or other financial securities that are selected by the fund manager, it is common for these large investment firms to invest in alternative assets. By adding more asset classes into a portfolio, it will be easier for investors who want to find the highest possible return on their investment.

Venture Capital Firms

Venture capital firms are typically private equity companies that provide early-stage financing or investments in new and emerging start-up companies with high growth potentials, but some venture capital firms have started to use crowdfunding platforms like Kickstarter in order to fund their newest ventures. By funding companies on different types of crowdfunding platforms, venture capital funds will continue to diversify their investments and gain access to a wider range of startup companies.