Video Interview: What’s the difference between Angel Investors and VCs?

The difference between angel investors and venture capital firms always seems to confuse entrepreneurs.

In truth, the difference is fairly clear-cut.

Who are they? What do they look for? How can they help? How much are they likely to invest? These are all key differentiators.

As an entrepreneur looking for funding, it’s important to understand these differences. Your choice of who to approach and when could have a significant effect on the efficiency of your round.

Xavier Ballester, the co-director of Angel Investment Network’s brokerage division, explains more in this recent interview. He’s talking to our friends at Linear, a specialist prime broker and award-winning hedge fund incubator based in London and Hamburg. read more

How do investors evaluate startup pitches?

An angel investor’s task is to predict the potential of a company based on early indications and very little else. There is no infallible process for doing this. This is the risk investors face; and the fear they must overcome to invest. Only then can they give themselves a shot at the returns available from a shrewd investment.

Your task as an entrepreneur seeking finance is to mitigate and alleviate that sense of fear and so lower each investor’s risk threshold. The two basic ways of doing this are: read more