How are angel investors different from venture capitalists?

We’ll dive into the details of the differences between angel investors and venture capitalist below, but here’s a wide angle of view first:

Angel investors are wealthy individuals (or groups of wealthy individuals) who invest their own money into companies.

Venture capitalists (VCs) are employees of venture capital firms that invest other people’s money (which they hold in a fund) into companies.

Now let’s take a closer at the two, before diving into the specific differences.

What are angel investors?

Angel investors are typically high net worth individuals who invest very early into the formation of a new startup company, usually in exchange for equity or convertible debt. The ro...