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Angel Investing or Venture Capital Investor

Link: http://academicvc.com/2009/04/dont-cross-the-streams/

As you try and raise early money, take a good look at this article, which highlights the difference between the way an Angel Investor goes about his business, and how a VC fund works, as of today. The article has particular relevance for Internet entrepreneurs, who may be better off staying with angel investors. Fleming reports that until now, an angel investor hoped that the next step would be for a VC fund to infuse capital into the same company. However a divergence is occurring where VC funds are looking for a much larger exit strategy, whereas angel investors can afford to take on the smaller deals and exit earlier. Which means that if there is both an angel and a VC fund involved, the exit may be delayed, to the detriment of the angel. Read the article for how this all plays out.

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