Comparing Angel Investor and Venture Capital: Which one’s better?

According to Stephen Prowse’s article about Angel investors and the market for investments, The Angel Market is a very distinct and localized market. It is also a provider to small, private firms, more on to private equity capital. Most of these angels often have entrepreneurial backgrounds so they tend to have start-ups in investments and other small companies. They have ownership in this firm and is also active in giving out advice that can bring benefit for the company.

There are also two kinds of Angels which is the active and passive investors. Active being the one who monitors the company they invest in and gives advice to workers on different situations while the passive is the one who only provide money and rarely monitors the company they are in unlike the active ones. The active angels are also known for their knowledge on entrepreneurial backgrounds since they themselves are ex-entrepreneurs who still have a knack on management and on other related stuff in this subject.

On the other hand, as Paul Burmeister stated in his article entitled: What to present to Venture Capitalists, enumerates the rules needed in making a good impression towards the capitalists in order for you to succeed and to have a possibility that you may get hired by these brilliant people. It is really important for you to give satisfaction to your soon-to-be coworkers or rather future bosses because they will play a big role in helping you get successful in the future.

The anomaly between the two is that angel investors are more likely to be staying on your side for it is their job to mold you into becoming an entrepreneur like them while the venture capitalists tend to give advice but on various things which could help you to succeed.

Though both may seem a great tool in starting up your business and be successful, I choose the Angel Investors than the Venture Capitalists because I wanted to have someone who’s like a teacher with past experiences towards entrepreneurship which could be an advantage for me to achieve my goals I wanted to accomplish in the near future.



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