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By admin
July 8, 2021

How are Venture Capitalists different from Angel Investors?

Venture Capitalists and Angel Investors both invest for an equity share in business however there are some key differences between both the investor types. When you seek capital for your business you look for various options which can give you an edge beyond just the investment. Hence, it is important to understand all factors regarding Venture Capitalists and Angel Investors to make right decisions for continuing business progressively.

Key differences of Venture Capitalists and Angel Investors are:

Venture Capitalists Angel Investors
  1. Professional Investors who invests in small companies by pooling in money from other companies such as large corporations, investment companies, etc.
  2. Minimum invests is USD $ 1 million or more
  3. Focused on how to scale existing business
  4. VCs ask for board seat along with equity share
  5. VCs have more responsibility and see to all the needs of the company from funding to sourcing requirements. 
  6. Involves lower risks 
  1. Private Individuals who invest their own money for startup funding
  2. Maximum invests is upto USD $1 million
  3. Focused on How to bring innovative ideas to the market
  4. Ask only for equity share
  5. Angel Investors contribute towards funding and expertise in the field of startup business.
  6. High-risk takers

Venture Capitalists VS Angel Investors

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