How are angel investors different from venture capitalists?
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How are angel investors different from venture capitalists?
Although, the two are the most common sources of funding for many businesses and startups. Angel investors are those rich and wealthy individuals who invest their money in companies, they are solo investors. But venture capitalists are employees of risk capital companies who invest other people’s money in companies. Also, venture capital lists prefer to get involved with companies in their early stages, mature companies and businesses that are really promising.
Angels investors offer mainly financial assistance, whereas a venture capitalist seeks a strong, competitive product or service, a talented management team and a wide-ranging market potential. Angel investors are specialized in early-stage companies, finance the technical development at the late stage and early market entry. On the other hand, venture capitalists, depending on the venture capital business, participate in early-stage firms and more mature businesses. A venture capitalist will want to invest in a start-up that shows an attractive promise and a lot of growth potentials.