business terminologies 101

Created by Mohammed Ameen Ul Haq

What is a Venture Capitalist

• A Venture Capitalist is someone who invests in early-stage startups — hoping to make huge returns.
• But here's the twist: most VCs don’t invest their own money.

what exactly is an Angel Investor?

• Is it a bank? A VC firm? Nope.
• An Angel Investor is a wealthy individual who uses their own money to invest in startups.
• But why? Because they believe in the founder or the idea — even before there’s any proof!

What do VC Firms and GPs do?

• These LPs give their money to VC firms.
• And the people who run those firms are called General Partners (GPs) — they are the real Venture Capitalists.
• They decide which startups to invest in and manage the fund.

Venture Capitalist

So where does the money come from?

• VCs raise money from investors called LPs — Limited Partners.
• Who are these LPs?

Who are some famous Angel Investors?

You’ve probably heard of:

💼 Kunal Shah (CRED)

💬 Rajan Anandan

🦈 Anupam Mittal (Shark Tank India)

Angel Investor

Do Angel Investors come in early?

• Yes! They usually invest at the idea or prototype stage.
• They take the biggest risks — when no one else is ready to.

4. Examples of LPs

LPs are:

💼 Big companies like Google, Intel

🎓 Universities like Harvard, Stanford

💰 Wealthy families like Jeff Bezos (Bezos Expeditions)

🌍 Even countries like Singapore (GIC)

How are they different from VCs?

• VCs manage other people’s money (LPs).
• Angel Investors use their own money.
• VC decisions can take months — Angels can say yes in one meeting.
• Angel Investor - ₹5 lakhs – ₹1 crore ($10K – $200K)Very early (idea/prototype stage)
• Venture Capitalist - ₹2 crores – ₹100+ crores ($250K – millions)

Have You Done This Before?

• Imagine you sell snacks or homemade products at a college fest.
• You use that money to buy more ingredients for the next event.
• You didn’t take help from investors — just reinvested what you earned.

What’s the Takeaway?

• If you’ve ever sold something, used that money to grow, and repeated it —you’re already bootstrapping.
• It’s not just a hustle — it’s a business model.
• And it’s more powerful than most people realize.

What is Bootstrapping?

So… What Is Bootstrapping?

• Bootstrapping = starting and growing a business with your own money.
• You use savings or reinvest profits — no external funding or loans.
• It’s slow but gives you full control and ownership.

Does Anyone Actually Do This?

• Yes — even Zoho, a billion-dollar software company from India.
• Built entirely without VC money.
• No fundraising. No dilution. Just consistent reinvestment.