Are angel investors better than venture capitalists?

Well, if you’ve read this far, you’ve probably already figured a few things out: Angel investors invest smaller amounts than venture capitalists. Venture capitalists ask for more company equity than angel investors. Angel investors fund younger, less established businesses than venture capitalists.

Who are angel investors & venture capitalists?

Angel Investors: Typically affluent individuals who often have a great deal of business and startup experience themselves. They possess a wealth of knowledge that they’re willing to share with the startups they invest in. Venture Capitalists: Manage pooled funds from different investors.

What is an angel investor?

An angel investor is someone who invests money (usually their own) in startup businesses in return for some equity in the company. While there are angel networks where several investors will pool their funds, many angels operate as individuals.