Angel Investors VS Venture Capitalists — Which One Is Right For You?
How are angel investors different from venture capitalists?
Both invest in businesses. Both can write you big checks. Both have the power to help your business growth with a cash injection you otherwise would never get.
Are they the same?
Heck no.
I found this out the hard way…
When I was raising money for my 4th company Flowtown, I really didn’t know enough about investors.
I got some pretty weird looks when they read my terms sheets.
I didn’t understand their expectations. And all I had to go on were stories from colleagues, and a head full of wrong assumptions about what investors are looking for.
I started on the wrong foot. But eventually, I learned how to do it right…
So, when it was time to raise funds for my next business, Clarity.fm, I knew what the investors were looking for.
And I nailed it.
I closed $1.6M in funding…
…in 3 days!
It pays to know who you’re talking to and what they want. Trust me.
So I want to clear the air so you know the difference and you don’t raise money from the wrong people with the wrong expectations.
That’s what this week’s video is all about.
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In this video, you’ll discover the difference between angel investors and venture capitalists down to 5 specific criteria:
- Source of money
- Investment thesis
- Pitching style
- Check size
- Investment filter
By the way, I’m also an investor myself, having invested in 40+ companies.
But I am an angel investor, and not a venture capitalist.
Hit play on the video and let’s go over the differences.
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Dan Martell has advised more startups than his hometown has people and teaches startup founders like you how to scale. (Get access to all my latest business hacks.) He previously created, raised venture funding for and successfully exited three tech companies: Spheric, Flowtown and Clarity.fm. You should follow him on Twitter @danmartell for tweets that are actually awesome.
Originally published at https://www.danmartell.com on December 7, 2020.
