What are angel investors and venture capital firms?
Entrepreneurs are often faced with the question of what type of investor is necessary for the stage of their business. The answer is not always simple. It depends on a number of issues including the amount of money sought, the type of business and the development stage in which the company finds itself. Knowing the differences from angel investor to angel investor and from venture capital firm to venture capital firm can save an investment-seeking entrepreneur significant amounts of time. As a rule, angel investors are high-net-worth individuals with a history of financial success. They may or may not take an active role in the company, but generally have “other day jobs.” Angels tend to fit the role of mentors for many companies, offering help when requested and sometimes when it is not requested. A key point to remember is that angels are writing personal checks using their own funds. They usually do not require a controlling equity stake and will often invest in groups (referred to
