If you’re looking for financing for your startup, you’ve almost certainly heard about angel investors and venture capitalists—two of your most exciting financial options. But what’s the difference?
Both venture capitalists and angel investors invest money in businesses in exchange for equity—but angel investors tend to invest lower amounts earlier in the fundraising process, while venture capitalists invest more money (and require more equity) later in the fundraising process.
Which is all very well, but how do you actually know which one you should approach to finance your startup? That’s where we come in. In this article, we’ll explain all about angel investors and venture capitalists, highlight the differences between them, and help you figure out how to make your pitch.