Angel Investors vs Venture Capital: Here Are 5 Differences

 


Original Content- Business Upside India 

More still approach angel investors vs venture capital to ensure financing for their company. Making the best choice for your company’s future requires understanding the differences between angel investors and venture capital investors. Often, angel investors and venture capitalists are used as alternative funding sources.

Both venture capital and angel investors firms target innovative start-up businesses; favor technology and scientific firms. Rich people who invest their money in businesses are called angel investors. Employees of risk capital firms invest other people’s money in businesses.

What is an Angel Investor?

An angel investor provides a sizable money infusion to a startup company. Angel financing is compensated with equity or convertible debt. The Securities Exchange Commission has established two criteria for accredited investors.

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