What are the Main Differences Between VCs and Angel Investors?
There are several key differences between VCs and angel investors:
Source of Funds: VCs pool money from various investors, while angel investors use their personal funds. Stage of Investment: Angel investors usually come in during the seed or early stages, whereas VCs often invest in later stages when the business has shown some traction. Investment Amount: VCs generally invest larger sums compared to angel investors. Involvement: VCs often have a more structured and formal involvement with the company, including board seats. Angel investors may take a more hands-off approach but can offer personalized mentorship.