While both Angel Investors and Venture Capital Firms provide investment, there are pros and cons to using each based upon the stage, operational objectives, and long-term goals of the business. To help determine which outlet is best for your business, below, we have put together the key differences in each investment vehicle.

1. THE KEY DIFFERENCES BETWEEN
VENTURE CAPITAL
& ANGEL INVESTMENT

2. While both Angel Investors and Venture Capital Firms provide
investment, there are pros and cons to using each based upon the
stage, operational objectives, and long-term goals of the business.
To help determine which outlet is best for your business, below, we
have put together the key differences in each investment vehicle.

3. DEFINITIONS
ANGEL INVESTOR:
An investor providing financial backing
to small startups / entrepreneurs.
VENTURE CAPITAL:
Financing provided by a group of
investors to small firms with perceived
long-term growth potential.

4. Angel Investors
• $24 Billion invested last year
• Companies raised an average of
$328,000 from angel investment
• In the past two years, there were
300,000 Angel Investor
transactions
• There are four million Angel
Investors, worldwide, with a net
worth of $1M plus
Venture Capital
• $48 Billion invested last year
• 11,686 companies were funded
between 1991 & 2000; 33% were
acquired and 14% went public
• Last year, of all Venture Capital
Funds, 32% were for early stage
companies, and 2% at the seed
stage
Investor Statistics

5. Angel Investors
• Comfortable investing smaller
sums ($50,000)
• Quick investment decisions
(1-2 Meetings)
• No control of subsequent
funding rounds
• Relatively simple terms for
investment
Venture Capital
• Lengthy Diligence Process-
Complex process to evaluate
investment decision
• Typically investing large sums
into businesses (on average
$2M+)
• Board Seat- VCs will typically
want a board seat as part of
their investment
Investor Characteristics

6. INVESTMENT AMOUNT
• Angel investment can vary, but is
typically smaller and for early-stage &
small ventures
• Venture Capitalists generally invest a
minimum of $2M
• Venture capitalists have more assets as
they are typically parts of large funds ,
whereas angel investors can be
individual savvy investors

7. INVESTMENT STAGE
• Both angels and ventures can
invest at any round of financing
• Venture capital is best suited to
lead financing rounds with
additional investment from
Angels, or act as an investor in
angel rounds.

8. PROFESSIONALISM
 Venture Capitalists have an arduous
process to evaluate deals
professionally, and are professional
investors
 Angel Investors may be professional
investors, or may be business owners
and professionals in another field
who want to invest some of their
savings

9. INVESTMENT SOURCES
Venture Capitalists are fund
with money invested from Pensions,
Corporations, and wealthy
families
Angel Investors typically have saved
and earned their investment dollars
their own, meaning their investment
may be more of a personal decision
than financial, supporting local
community / charity

10. VCs typically want a board seat in
exchange for investment.
Angels may also want to be involved if
they can be a direct asset to the
company
Angels are typically less likely to
become board members than Venture
Capitalists
BOARD SEATS

11. KEY DIFFERENCES
BETWEEN ANGELS &
VCs
 Investment Amount
 Time Investment
 Professionalism
 Money Invested
 Board Seats

12. NEED HELP
WITH RAISING
FUNDS FROM
VCS OR ANGEL
INVESTORS?