Angels and VCs: Is There a Preference?

Separating angels and VCs is a matter of, well, money.

An angel investor invests their own money. According to CEO and entrepreneur Jay Adelson, angel investments will range from $10,000 to $250,000. On the other hand, a venture capital firm raises money from limited partner investors and then uses that money when funding. Venture capital investments will typically only begin at $1 million.

Angels and VCs also differ in the way they operate. A VC firm will have a hands-on role in a company, attempting to steer it to an exit. An angel, more so than the VC, takes on the role of an adviser. Which should you choose? That depends on how much funding you’re looking to procure. For more on the differences between angels and VCs, watch the video featuring Adeslon.