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What is the range of capital you can expect from an Angel vs VC?

My answer to What is the range of capital you can expect from an Angel vs VC?

Answer by Raad Ahmed:

The range for angel investors and VCs can vary, but generally speaking angel investors are likely to invest much less at a much earlier stage in business development than a VC will. To throw a number out there, $25,000 tends to be a typical investment made by an angel investor, and a VC can range and reach several millions of dollars. However, those ranges can vary based on many factors that will vary from situation to situation.

While angel investors generally offer less money, their role in your company will likely be different as well. Here’s how it usually works out based on the type of investor that you choose.

Venture Capitalists:

  • Invests larger sums
  • Ability to raise large amounts of money from institutional investors
  • Evaluates each business transaction completely
  • Utilizes strong governance to protect the capitol of each deal

Angel Investors:

  • Invests more conservative sums
  • Generally makes decisions quickly
  • Relies on self-decision making instead of a board
  • Doesn’t impose complex terms

It really depends on the future goals you have for your business (as well as if the climate of your business is best suited for a particular investor) that will determine if it will be more practical to work with an angel investor or a VC.

If you need help narrowing down your options, you should consult a business attorney. LawTrades has access to several highly skilled attorneys that can help guide you in the appropriate direction. The relationship you develop with your investors is incredibly important—you want to be sure you are making the appropriate choices. Contact us today to schedule your no obligation consultation.

What is the range of capital you can expect from an Angel vs VC?

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