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What are the relevant differences between angels and venture capital investors that Ranjith Kumaran should consider...

What are the relevant differences between angels and venture capital investors that Ranjith Kumaran should consider when raising money for his venture? Who would be the best partner for him in the short term? Who would be the best partner in the long term

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Expert Solution

1. Angel investors invest at a very early stage where as venture capitalist (VC) come at a later stage when idea has been tested.

2. Angel investors are primarily helping rather than eyeing on profit.
Where are VC are primarily for profits rather than helping.

3. Angel investors are our known and dear ones like friends and family.
That's why they are called "Angel" Investors.
VC are not our friends and family in general.

4. Angel Investors are Individual in nature. VC are Corporate in nature.

5. Angel investors are having less budget. VC has a huge budget to invest.


Angel Investors are best partners for short term.
They provide the seed money for idea to be tested. Once the idea is tested and successful. Then Angel investors generally step out and VC step in.

Venture capitalists are best partner for long term.
Because venture capitalists steps in with a aim to step in for long period and covert the idea into a successful company.
VC stay until taking the company to IPO or sell it to other VC.

jeff jeffy answered 3 weeks ago
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