Whom You Should Pitch On: Angel Investors Or Venture Capitalists?

 Funding your newbie startup business is surely a no child’s play. You need seed capital to live your business dreams. No matter in which stage your business stands upon. You have to pitch on for venture capitalists or angel investors. But how about if you have to decide between the two. I mean, to whom do you think is the better to pitch on? Let us find out.


Venture Capitalists & Angel Investors; What’s Common Between The Two?


Before knowing the difference between the two, let us know about what common characteristics they share. Well, let me tell you both are into the money investment or say providing financial help to startups. For this, they both take the risk in hope of the return of ROI.





Working Difference


One of the main differences between the two financial phenomena is their way of investing in finance. If you go seeking VC funding, then you will find that they prefer doing investments in those companies that are established. It is all because to avoid the risk of losing investments. 


Usually, money is pooled from pension funds and other different sources. In short, venture capitalists don’t utilize their own money regarding investments in startup companies. 


Unlike VCs, angel investors spend their own money for the growth of a startup in its infant stage. $1 million is supposed to be the estimated net worth in need for them. 


At least, $200K is considered to be the annual income for those investors who invest in securities that are non-registered with the SEC. Most of these angel investors belong to close friends and even family. 

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