Full access to Entrepreneur for $5
Subscribe

VC vs. Angel Money: A Primer

Don't blow a financing opportunity by approaching the wrong source.

By
This story appears in the February 2009 issue of Entrepreneur. Subscribe »

As a venture capitalist, I get approached several times a day by entrepreneurs looking to raise money. One of my typical responses is, "You shouldn't be talking to me; you should be targeting angel investors."

The source of this confusion varies: Sometimes it's a misunderstanding of the different roles and expectations of a venture capitalist vs. an angel investor. Other times it's a lack of clarity on the part of the entrepreneur regarding what he or she wants to accomplish with both the business and the financing. Regardless of the source of the confusion, here are a few guidelines for determining whether you should be approaching venture capitalists or angels for your financing.

Continue reading this article -- and everything on Entrepreneur!

Become a member to get unlimited access and support the voices you want to hear more from. Get full access to Entrepreneur for just $5!