Angel Investors vs Venture Capitalists
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- Опубликовано: 27 июл 2024
- Angel Investors and Venture Capital Investors can both provide funding but the differences are important for startups looking to find the right partner.
Angel Investors are typically individuals - They typically don’t have other decision-makers in their investments and they are usually investing their own money. This gives them flexibility in terms of deal terms and it also means that they often don’t have external requirements on how they get their money back or if they need a seat on the board.
Venture Capital investors are typically not individuals, but rather LLCs or firms. They are most typically investing other people’s money in a Fund. VC’s will raise this money from people referred to as Limited Partners or LPs. LP’s are typically writing million-dollar checks and expecting VC’s to invest that money and get a return.
Because VC’s are investing other people’s money they have general expectations on how long it may take to get their money back, most typically in 5-7 years.
Both Angels and Venture Capitalists look for companies that can grow and be successful but each may look at companies at different stages and be interested in making different types of investments.
![NEVER Say This To An Investor [9 Things]](http://i.ytimg.com/vi/9yZsTCoEzZk/mqdefault.jpg)
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"..finding the right fit is not just money it is finding the right partner for your business." The right partner will ask the tough questions, always provide honest feedback, and supports the vision of the company.
Thank you for simplifying the definitions, key points & differences. Others explained it in a way as if they juts want you to know they're smart, not to teach.
Glad it was helpful!
Investment is the key to sustaining your financial longevity. And not just any investment but an investment with guaranteed returns. Also do proper research and invest with the right approach. Stocks, real estate, Hedge funds and ETFs are good investments as well.
I just started my investment journey. I wish to have about 10 streams of income before I'm 30. I'm currently 26.
@@ellievon6479
Great plan 👍👍I Started investing at 37. Sometimes I wish I started earlier. it might seem like you are wasting your time now but you're making huge changes and progress. Watch out in nearest future your friends will regret why they didn't take this bold step. Keep it up.
@jay chris
You have to start small to grow big. I started from financial market. Didn't have any clue about trading or investment but I'm glad I came across a regulated broker who is my investment advisor and trader. He handles all my trading activities and investment. One thing as a beginner is to have professional guidance at your end. You mustn't invest your time to make profit.
Financial market is very profitable. Been on stock for a long time and I'm making huge profit.
@@kathythompson6021
Wow!! Really interesting I just started trading as I said earlier in previous comment but I've just made series of loss and a few profit maybe because I was combining work with trading I guess you have a broker who helps you trade please kindly share his contact info thank you🙏🙏🙏🙏
The vest over the t shirt or polo is so accurate for VC’s. 😂
Thanks! Funny enough, this started as a photo of Jeff Bezos that I Photoshopped. He wears it well. www.vanityfair.com/style/2019/04/fintech-bros-patagonia-vests
I truly appreciate this explanation and information. The graph with business stages was especially helpful.
Glad it was helpful! Thanks for watching and leaving the comment!
@@HalfIdeas help me setup art gallery
Hahaaa. I just hit like button automatically as soon as the ghost busters reference 👻 popped up, hahaaa brilliant. Thanks for the vid 👍
Awesome! Thank you!
I loved the ghost busters image too!!! The entire video was excellent but that was the cherry on top.
I appreciate this so much, thank you Greg!
Great video Greg! Vest over polo shot made me chuckle
Thanks for making this really clear and simple to understand. Very helpful.
Glad it was helpful! Thanks for watching.
Your information was perfect and your shirt is fine not to interested in your wardrobe just your knowledge thank you.
Great helpful content btw. Keep it up!
Thank you for the video!
Very helpful!! Thank you!
awesome video, this answered my question directly
Thanks this was detailed and straight to the point
Glad you found it helpful. Thanks for checking it out.
Awesome! Exactly what I needed.
Glad it helped! Thanks for watching.
Nice Explanation, thanks for the efforts :)
Great. Thanks
Another amazing video
Glad you enjoyed it
Great information thank you
super clear!
Thanks, I'm glad you enjoyed it.
Thank you
Super helpful :)
Very good explanation!
Glad it was helpful! Thanks for watching.
@@HalfIdeas so for those that don’t have the annual salary to be an angel investor, what other pathway can they get in? Angel group maybe?
I wouldn't recommend angel investing to folks who don't have a solid financial base because startup investing is very risky, speculative and expensive. I would highly recommend learning the basics on public stock trading as a way to learn both investing and finance. That being said Angel Groups, CrowdFunding and Micro-Angel investing can be a way to dip your toe in the water without as much capital at risk.
@@HalfIdeas I greatly appreciate this explanation. Thank you
Hello I am wanting to open a hobby shop (tcg/board game) shop. There are not many (only 2 ) in my area. How can I get an investor to go into this with me? I know how to do everything I just need the money to get everything to get going. I know I need around 65-80k.
This is great info! Question: my business is 6yrs old and i just signed a 3yr contract to provide goods and services to (4) fortune 100 companies…..projected $14M in revenue over the next 2yrs. I need to raise funds for expansion and scaling the business asap. Should I look for a VC?
Depends on the business - goods and services businesses may not be the best fit for a VC. It really depends if you think you can grow the business to a 100M+ business. Expansion and growth capital may be cheaper with a business loan, an SBIR grant or a revenue based financing.
Perfect explanation. Where can we find an Angel Investor? You're one yourself, correct? Thanks in advance!
I made another video on finding investors here: ruclips.net/video/jPVw5_OW0zE/видео.html
Am interested very much on this kind of business partnerships
Hello Greg, I produce films and I am looking to pitch a film that needs a budget of $380K, should I go for an Angel Investor or a Venture Capitalist?
I think the film industry is a very different. Pitching a film or a book is really about the specific piece of content and your reputation as a creator to produce a great film and a great return. I think these types of things are pitched to studios or producers who I believe are investors in this form of content. Traditional angel and venture investors would not be interested.
Hey Greg,
I am an entrepreneur with an agribusiness SME based in Kenya. I am trying to fundraise to scale our operations, I was wondering if it's possible to work with you for guidance and insights on fundraising from angel investors?
Can’t wait until the day when investing can be done through individuals via the web, but vetting the founders and the project.
What is the best way to market big ideas like Tesla, that will take years produce a product that returns revenue?
Have a clear plan. Big ideas require clarity in vision and execution. Elon actually wrote his down and published it. www.tesla.com/blog/secret-tesla-motors-master-plan-just-between-you-and-me
The project has the potential to generate two and a half million dollars and I am definitely under selling the amount of money it can actually bring in is so much more because I'm not including royalties whatever verification and proof of identity even if you need to see my credit which is good I'm all in
Thanks for the note. I wish you success in your business venture! Thanks for watching.
How much should an Angel Investor ask for equity in the company?
This depends largely on the size of the investment. In early stages it's common for startups to use a SAFE (Simple agreement for equity) that is capped at a reasonable number. Angels should be very cautious to not be greedy and try to take too much equity. I've seen a number of startups that have sold more than 60% of their equity in very early stages and that can make them un-investable in later stages. Target should be 10-25% per financing round on average (pre-seed, seed, A, B, C, etc.)
I'm looking for a angel investor, where do I find them?
I made a vide about finding angel investors: ruclips.net/video/jPVw5_OW0zE/видео.html
Hi Greg, I enjoyed your video. I'm looking for an Angel Investor, how do I contact you?
gregraiz.com or Raiz.vc
@@HalfIdeas Done, thank you.
What if you need about 150-200k? Getting 2 BAs into the company had up and downsides. Would only one BA ever invest this sum? Guess we need to find out
If you're raising 150-200K you can either get 2-5 angels to participate or find a pre-seed venture firm. While it is possible to find a single angle to invest 150K, I've found this to be less common.
5/5
Thanks!
Hello thank you for your videos actually I want to show you my project idea and If you can help me to find an investor
Hello, I am very interested in working with an angel investor for my business. How can I connect with you?
You can find me on gregraiz.com but I get a lot of requests so I can't work with everyone, feel free to drop a comment/question and I'll do my best to answer if I can be helpful.
How beautiful do you explain bro.
Thank you so much 😀
@@HalfIdeas hey can you please recommend me a book which has every information on how to start a business all the way from startup to unicorn to.... Like how business management works, what/which investors to approach.... Hope you can imagine of what i am talking about.😊
@@jay-rathod-01 I have a pretty good book list video that may give you some ideas: ruclips.net/video/R0oEr6fqIzo/видео.html
Half ideas?
I am an ideas guy
eg tech venture concepts etc but i am also a domain name investor and as such i buy the domain names of my ideas assoon as i have my tech venture ideas etc
I have also taught my self how to day trade and swing trade options etc on the stockmarket but as domain names are effectively digital pieces of land on the internet etc domain names are largely digital intangible illiquid assets etc
I am looking to try and liquidate some of my donain names to refinance myself so that i can swing trade options on the stockmarket for real etc
I am prepared to either sell or pawn my donain name portfolio to an investor in excgange for a day trading fund
Thoughts?
There are companies that buy domain portfolios. I'm not very familiar with this space but I've always felt that domains speculation is really purchasing a lottery ticket rather than real estate. I think stock investing is more profitable though I personally prefer long-term investment rather than swing trading. Either way it's likely a better return than domain investment.
@@HalfIdeas
Stock investing has one major benefit that domain investing doesnt in as much as a person can buy shares in a stock at a reckonised price and sell at an actual price tgat is tge same across thw world but domain names have two prices eg what a person is prepared to buy a domain name for and what a person is prepared to buy that domain from them etc which is anyones guess plus domains can take time to sell of qt all etc
Hello sir can single person can allowed to be venture investors of a company or not. If he/ she can able to invest millions of dollars amount in business
Typically, a single person investing their own money is called an "angel investor" or if they are investing millions they may be called a "super-angel." Ocassionally angel investors will start a venture fund and will invest some of their own money into the venture fund, when they do this they can call themselves venture investors.
@@HalfIdeas hello sir can single person can be owner of venture capital firm or not
We are looking for an angel investor!
Check my other video on finding investors for your Business or Startup
ruclips.net/video/jPVw5_OW0zE/видео.html
Great material . To all startup founders out there, let me know how I can help you.
Thanks for the comment. If you have suggestions or want to help other founders I recently started a discord for discussion and community contributions. discord.gg/U9CdduE
Very helpful
Glad it helped
Would you like invest in literature?
Book publishers tend to invest in literature, it's not something that Angels or VC's tend to do.
🤓learning new words
Nice! What words did you learn?
@@HalfIdeas Angel investors and Venture capitalist. I'm outlooking for other tools the tools that I can utilize as a small investor.. I earn about 30000 a year In active income. Been investing small time in stocks and low slow growth since 2018 With a long term investing mentor.
Hi Greg... if you're an Angel investor in Canada... I have a proposal for an IT product in the Medical research field :)
or, do you know anyone in Canada?
Try www.capitalangels.ca or mapleleafangels.com as a start. I'm sure there are many other groups the focus on Med-tech in Canada too. I'm personally focused on companies applying to the Techstars Boston program. Canadian companies welcomed.
@@HalfIdeas Thanks a lot, Greg 😊… I’ll check them out. What a co-incident, we also have an office in Boston, Massachusetts. The only reason we’re going for Canada is that immigration is easier. Our ultimate goal is to come to USA 😄
@@skycouncil8523 how did it go? Your idea was pitched into?
I am looking for an angel investor to start my housing project in Surabaya City Indonesia. My housing project on 40.000 square meters and need USD10M
You may be looking for just an investor or business partner rather than an "angel investor." If you're building a housing project you're buying/developing an asset and you may be able to project an expected return over a 2-3 year period. Angel investors are typically looking to invest in startups that have the potential to return 10 to 100 times the original investment. Building construction, development, restaurants or renovations are more typical for home development funds or investors specifically looking to invest in real estate.
@@HalfIdeas yes, I need investors or business partners who can support the funds, to buy land and build houses
I need a venture to invest in, anyone has a business idea?
Looking for investor to expand existing telecom service business in Dubai registered company
@@mohamedbahgat4084 give details about the company
@@Ali-lm7uw I want to start a halal slaughter house
Can I ask you question sir?
You just did.
Oh. There is this investment platform that I get involve but now They're asking me to pay to withdraw my money. Can you help me sir
@@nleyva8633 Sorry - I can't help you with this.
@@nleyva8633
Write me I can help you
@@Sunil26105 hello
hi
the black sign that says "you don't have to be crazy" whatever it says sucks and needs to be removed from your wall... Sucks!