What are the differences between angel investors and venture capitalists?

What are the differences between angel investors and venture capitalists?

Angel investors are individuals who provide capital for startups, often in exchange for convertible debt or ownership equity. Venture capitalists, on the other hand, are part of firms that manage pooled funds from many investors to invest in startups, usually at a later stage.

What are the advantages of getting funding from angel investors?

Angel investors often provide not just funding but also mentorship and networking opportunities. They tend to be more flexible with terms and can make decisions quickly compared to venture capitalists.

Are there any downsides to working with angel investors?

Yes, some downsides include potentially giving up more equity than you would with venture capitalists and the possibility of having less structured support.

How do I find angel investors for my startup?

You can find angel investors through networking events, online platforms like AngelList, or by reaching out to local startup incubators and accelerators.