What's the Difference between Angels & VC?

Critically-acclaimed bestselling business author Kim Lavine

Critically-acclaimed bestselling business author Kim Lavine

by Kim Lavine

Angel investors and Venture Capitalists are not the same. Here's what makes them different.

  • Angels typically have a more patient exit strategy with a mandate to invest in businesses in their communities to foster economic growth and development.
  • Venture Capitalists are concerned with only one thing: the bottom line.
  • Sometimes Angels and VC are one in the same, moving from their own personal VC firm to their Angel group in one afternoon. Do your homework as well as you can on the individuals you are dealing with. The best way to get information on these people is to talk to your SBDC counselor, who is usually connected to many business leaders in the community.
  • Some VC firms don’t actually have money, but are more like brokers who have the connections and know how to get it.
  • Don’t expect to get names, business cards or contact info on individual Angels as you would VC firms. Use every opportunity you have to get face-to-face with Angels to your fullest advantage.