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Getting Money From an Angel Investor Doesn't Mean His or Her VC Firm Will Invest in Your Company

This story appears in the July 2014 issue of Entrepreneur. Subscribe »

If the success of companies like Apple and Genentech was responsible for making tech a worthwhile investment and giving rise to the era of venture capital, it could be argued that later companies like Netscape and Google created today's golden age of angel investors--those who plow their new wealth back into their industries.

But how is an angel investment from Netscape co-founder Mark Andreessen different from one brokered by his venture firm, Andreessen Horowitz? It's an important distinction; an understanding of the rationale and potential conflicts for angel investments is crucial for entrepreneurs who are out pounding the pavement for dollars.

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