facebook tracking pixel
Slide 1

Is your business still in the early stages?  Angel investors can help when seeking initial capital for product development or market entry, as individual angels are often more inclined to take risks on early-stage ventures.

Has your business progressed beyond the early stages?  Venture capital can help businesses that demonstrate significant growth potential and scalability, as VC firms often invest larger sums in more mature businesses.


Angel Funding vs. Venture Capital

Angel Funding

Angel investors provide seed money to business startups—to the tune of tens of thousands to a million dollars or more—in exchange for convertible debt or ownership equity.

  • Some angel investors come together to form angel groups or angel networks.

Venture Capital

Venture capitalists (or VCs) usually make their capital investments later in the business cycle. They exchange their investment and their expertise for a significant portion of the company’s ownership.

Before you approach an angel investor or VC, ask yourself these questions:

  • Am I willing to give up some amount of ownership and control of my company?
  • Can I demonstrate that my company is likely to realize significant revenues and earnings in the next 3-7 years?
  • Can I demonstrate that my company will produce a significant return for investors?
  • Am I willing to take the advice from investors and accept board of director decisions I may not always agree with?
  • Do I have an exit plan for the company that may mean I’m not involved in 3-7 years?

Be sure to have a solid business plan and executive summary that includes:

  • Financial overview for at least three years out.
  • Sales and marketing plans.
  • Three-to-five-year goals and your action steps to get there
  • Exit strategy



Use the Resource finder and select FINANCIAL RESOURCES AND ASSISTANCE to find organizations that specialize in providing free and low-cost financial assistance for businesses