The Difference Between Venture Capital and Angel Investments

Image result for The Difference between Venture Capital and Angel InvestmentsWhen it comes to getting funds for your start-up, it is important to know that investment comes in various shapes. Here look at the difference between venture capital investment and angel investment:

Angel investment

Angel investor is a person who put his money into the growth of a small start-up business, also possibly contributing their advice and experience. Angel investors might be wealthy individuals who have taken a personal liking to a product, a family member or a friend, or a group of angels investors who come together to finance start-ups.

Venture capital

Venture capital normally involves a whole company firm – board members, investors, and individuals whose job is to help a business develop. Venture capital companies are made of professional investors.

Key Differences between the two

Angel investors put in a variety of amounts. They can invest a small amount of money or might go as high as £1 million. On the other hand, VC firms are unlikely to put in less than £1 million.

Angel’s investors invest in early-stage businesses while venture capitalists firms are generally unwilling to invest early-stage business unless they demonstrate compelling promise and high growth potential.

Although angel investors might have some valuable advice for you, they do not have a seat on your board. On the other hand, venture capitalists have a say in how a business is run.

References

http://www.rockiesventureclub.org/colorado-capital-conference/how-do-angel-investors-differ-from-venture-capitalists/

http://www.businessinsider.com/how-angel-investing-is-different-than-venture-capital-2010-3

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