- VCs will require a larger target ownership percentage (e.g. 20-33%) of the company whereas angels are often fine with 1-5% (having a large number of angels could result in the same ownership percentage as a VC)
- VCs will require a board seat (most often) and get heavily involved in the company whereas angels are often more hands-off and passive
- VCs will care more about the company and fight harder to see it succeed (assuming they do their job)
- VCs will work towards and require an exit, often within 5-7 years, whereas angels will expect a return, but are usually more flexible on timing and style (e.g. dividends, exit, etc.)
- Raising VC money makes it more likely that tech banks will provide a large line of credit whereas raising from angels often won’t help with a bank line (bank lines are still available once the startup has a few million in annual recurring revenue)
- Raising VC money is significantly more difficult than raising angel money
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