Investment vehicles and structures

Direct Investment

A direct investment is an investment made in a company rather than through a diversified fund. You bear the company-specific risk and need to assess the investment’s rights, valuation, and possible need for follow-on capital.

Example: An angel investor buys shares in one startup directly.

Back to the glossary

Knowing the language helps you follow the conversation. Knowing what to ask is how you participate in it.

Understanding the terms is a first step. The Aligned Capital Program uses them to teach you how to evaluate a fund and prepare the questions to ask its manager.

Explore the Aligned Capital Program