What are the differences between crowdfunding and angel investing?

What are the differences between crowdfunding and angel investing?

Crowdfunding involves raising small amounts of money from a large number of people, typically via online platforms. Angel investing, on the other hand, is when wealthy individuals invest larger sums in startups in exchange for equity.

Which option is better for a startup?

It depends on your startup's needs. Crowdfunding can provide validation and a customer base, while angel investing offers mentorship and larger capital.

What are the risks associated with each?

Crowdfunding risks include not reaching your funding goal and potential backlash if you fail to deliver. Angel investing risks involve giving up equity and the pressure to deliver returns.

Can you give examples of successful crowdfunding campaigns?

Sure! Notable examples include the Pebble smartwatch and the Oculus Rift, both of which raised millions through crowdfunding platforms.

How do I choose between the two?

Consider your funding needs, the level of control you want to maintain, and the type of support you seek. Each option has its pros and cons.