“Hedge Fund” is an investment fund focused on leveraging sophisticated investment techniques to deliver above-average returns for its Investors.

While Hedge Funds often invest in Startups, they are not the same as a Venture Capital Fund or Private Equity fund. One main difference is that Hedge Funds can invest in a wide variety of types of investments, whereas Venture Capital and Private Equity Investors are specifically looking to take equity stakes in high-growth companies. In addition, Hedge Fund managers tend to be more passive in their investment roles for Startups, as they typically do not provide the mentorship, resources and connections that Venture Capital or Private Equity Investors provide.