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.