When Choosing Between VCs and Angels

I read a very interesting blog post on the AVC blog space. It was comparing the option of raising venture funding from venture capital firms versus taking venture capital investment from angel investors in the seed investment stage of a company. The blog advised that angel money is usually more appropriate during the inception of the business. The reason is that, inherently, the angel investors have a hands-off approach, which gives the entrepreneurs the freedom to develop their ideas. However, raising money from a VC could prove to be a better choice in the long run. When the time comes for a follow up investment, VCs are more likely to have the funds and desire to participate compared to the angel investors.

This is a link to the blog post.

While on the subject, this is another interesting blog post that summarizes well the funding experience when choosing between the three capital sources — VCs, Angels, and Friends&Family.

Konstantin Valchev
Konstantin Valchev

Konstantin is the President at OnLighten, which specializes in Customer Relationship Management (CRM) and business systems strategy, implementation, integration, automation, and training. He was previously an Analyst at OpenView.
You might also like ...
Finance & Operations
Avoid These Common CAC Payback Period Mistakes

CAC payback period is a fantastic metric to measure success. But despite your best efforts, you might still be getting CAC payback wrong. Here’s what to avoid.

by Kyle Poyar
Finance & Operations
From $10M to $100M+ ARR: Five CFO Learnings
The six-year CFO journey at Pantheon – where we increased ARR ten-fold to and through $100 million – taught me...
by Mark Khavkin
Finance & Operations
4 Steps For Hiring Your First Finance Leader For Your Startup
In today’s macro environment, founders are realizing just how important it is to have a strong finance leader working alongside...
by Vivian Foley