For start-up companies that are without an established performance record or enough assets to obtain a bank loan, finding financial backing is critical for both business growth and success. Therefore, many start-up companies endeavor to secure finances from outside investors. So let’s see what it’s all about: Angel Investors vs Venture Capitalists.
The difference between these two types of outside financing is a question that we often receive; therefore we have outlined the differences below.
A typical angel investor will invest $50.000 up to $200.000 in any one company and may seek a hands-on role in the management of the company or will look to act as the company’s mentor, often in online businesses.