What is a business angel, a VC or a family office and what does each investor bring to a startup

In the entrepreneurial ecosystem, labels often appear that are repeated in conversations, news and presentations. Business angel, venture capital, corporate venture capital or family office are often mentioned as if they all fulfilled the same function. In practice, each one responds to a different logic and provides different things depending on the time of the project.

Understanding these figures helps to adjust expectations and make better decisions. Not all capital is the same nor do all investors play the same role in the development of a Startup.

Business angel

A business angel is usually a person who invests their own money at a very early stage. He often has previous experience as an entrepreneur or in management positions in large companies, so he is well aware of the initial challenges of starting a project.

Beyond capital, their main contribution is usually in close support. It helps to make decisions, shares practical learning and opens up relevant contacts. Their involvement is usually direct and personal, which is especially valuable when the project is still being formed.

Venture Capital or VC

Venture capital funds manage third-party money and seek to invest in startups with growth potential. They usually enter when the project has already demonstrated some traction and needs to scale up.

In addition to funding, they provide structure and discipline. They help to professionalize management, to define clear metrics and to prepare the project for subsequent phases of growth. His vision is strategic and oriented to the long term, with a clear focus on the evolution of the business.

Corporate Venture Capital or CVC

Corporate venture capital works in a similar way to a fund of reversal, but he is linked to a large company. Its objective combines economic return with strategic learning.

This type of investor provides access to sector knowledge, infrastructure and opportunities for collaboration. It also provides pilot tests and validations in real environments. For a startup, it represents a direct connection with a specific market and with very defined business challenges.

Family office

A family office manages a family's assets and usually invests with a long-term perspective. Their approach tends to be more patient and flexible than that of other investors.

In addition to capital, it provides stability and a vision that is less conditioned by short cycles. In many cases, he accompanies the project on an ongoing basis and especially values the strength of the team and the coherence of the business model.

Accelerators

Las accelerators they work with startups for a specific and structured period. They offer intensive programs that combine training, mentoring and, sometimes, initial investment.

Its main value is in pace and focus. They help to order priorities, validate proposals and prepare the team to interact with investors and customers. They also provide visibility and access to networks that are difficult to reach alone.

Incubators

Incubators usually accompany projects at a very early stage, even before a company is incorporated. They provide space, basic support and guidance to transform an idea into a viable project.

Beyond financial support, they provide time and context. They allow us to experiment, learn and build with less pressure, which is especially relevant in the first steps of entrepreneurship.

Choosing the right: the right inverter for the moment

Each of these figures performs a different function and is better suited to specific moments in the development of a startup. Beyond money, what makes the difference is the type of support, access to knowledge and the ability to provide context and judgment.

Understanding what's behind each label allows us to build more balanced relationships and align expectations from the start. At Santalucía Impulsa, these profiles are analyzed with a practical perspective, understanding that the value of an investor is measured both by the resources they provide and by the way in which they accompany the growth of the project.