Main differences between VCs and Angel Investors
What are the main differences between VCs and angel investors: - Angels invest their own money, VCs invest other people's money (LPs)- Angels can decide instantly, VCs need internal discussions and often weeks of due diligence- Angels can invest in whatever interests them, VCs must follow their fund's thesis- Angels typically write smaller checks ($25k-250k), VCs often need to deploy big checks per deal- VCs need companies to be huge ($1B+) to return their fund, angels can win with smaller exits- Angels often invest based on gut feel and relationships, VCs need data and proof points- VCs have pressure to deploy capital within 3-4 years, angels can invest at their own pace- Angels are usually happy with 3-5x returns, VCs need 10x+ to make their model work- Angels have often been founders themselves, VCs might have a big team and […]