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Created with Fabric.js 1.4.5 Venture Angel vs In many ways Angels & VCs are looking forthe same things in a startup seeking funding.However, there are some big differences that you should be aware of. Capitalists Investors WHO? - An individual investor- Might be professionals, former business associates or even successful entrepreneurs - May pull in other Angels to fund a project together - Uses their own money to fund the startup - A firm or company- Uses other people's money to fund startups as investments (derived from corporations, pension funds, wealthy and prosperous individuals as well as families) SIZE OFINVESTMENT Individual - $25K to $100KGroup of Angels - $750K to $1 mil $7 million on average, on asingle company STAGE OFINVESTMENT - Last stage of technical development or;- Early market entry *they do not like to invest in anything that is just an idea without a prototype - Seldom interested in early stage ventures, unless with compelling reasons- come on board at a later stage when the concept is proven and with initial revenues obtained in order to more quickly expand the company RISKTAKING Typically takes higher risks thanVCs since they are investing duringthe earlier stage of the startup Appetite for risk is smaller as theyare answerable to the people whohas invested the monies for themto fund projects DECISION MAKING Makes decisions on their own and not answerable to anyone elseexcept themselves - Have an investment committee who will work together to make decisions- More rigorous research done before landing on a decision to invest CONTRIBUTIONS Network and Expertise *Because their money is on the line, they will be highly motivated to see your business succeed. Network and ExpertiseUsually domain knowledge on howinvestees can grow the startup astheir exit is dependent on thesuccessful sale or listing of theirinvestee. BOARDINVOLVEMENT Likely to be excluded fromoperations of the company.However requires a confirmedseat on the company's board ofdirector position to give strategicinputs for company development. May decide whether or not to bepart of the the business
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