Institutional Investor
A professional organization that invests other people's money at scale, such as a venture fund, pension fund, or asset manager, as opposed to an individual angel.
Why it matters
Institutional money usually means larger cheques, formal processes, and board involvement. Knowing when your company is ready for institutional investors, versus angels, shapes who you should be pitching.
For example
Instead of angel cheques, the startup's Series A is led by an institutional investor, a venture fund writing a 20 crore cheque with a formal process and a board seat.
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Related terms
Also in Starting Up
See how founders actually handle this on Raising your first round, part of the Starting Up hub.
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