(I) Angel Investors: Informal investors in the startup in its early stages. They are ready to invest when even the venture capitalist are least interested to make investments. Most angels are expected to dilute after the first few rounds of investment.
Whereas;
Venture Capitalists: Professionally managed pool of equity capital who undertake long-term investment, usually occurring over five years and have continuous involvement in the management of business.
(II) Role of an angel investor:
- Most angels provide proactive advice, guidance, industry connections and mentoring start-ups in its early days
- Their objective is to create great companies by providing value creation, and simultaneously helping investors realize a high return on investments.
- They have a sharp inclination to keep abreast of current developments in a particular business arena, mentoring another generation of entrepreneurs by making use of their vast experience.
