Angel Investors VS Venture Capitalists - Which One Is Right For You?
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Want to know the difference between an Angel Investor and a Venture Capitalist? In this video, I’m going to distinguish the two by explaining the different sources of money, pitching styles and more.
Exclusive Resource: Fundraising Like a Pro - Learn the 3 phases of fundraising and a 7 week process for starting & closing your next round of funding - bit.ly/3mJbsiz
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Instagram: @danmartell
Twitter: @danmartell
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Exclusive Resource: Fundraising Like a Pro - Learn the 3 phases of fundraising and a 7 week process for starting & closing your next round of funding - bit.ly/3mJbsiz
My Highlights: Angel Investors vs Venture Capitalists
It pays to know who you are talking to and what they want when you want to raise investment capital. Five differences between Angel and VC investors:
1 Source of money = Where does the money come from? Angels invest their own money, whereas VCs get money from other investors.
2 Investment thesis = Why do they invest? Angels may have personal reasons (fun, interest, create portfolio of assets), aligning their money, time, and advice. VCs want to get a return. Often focus investments in a particular market (e.g. bitcoin, AI, SaaS, Big Data, etc.)
3 Pitching style = Angels typically informal. Usually follows process of: warm introduction, phone call, in person meeting, check. VC more structured: formal pitching style, with pitch deck.
4 Check size = Angels invest on the small side: $10k to $250k. Often for product development. VCs start at $250k, up to $3million. Often for market expansion.
5 Investment filter = Angels looking for ideas with possibility. Is it a good enough story to take a risk? VCs looking for traction: revenue, product, market, team, momentum that shows performance over time.
Takeaways: The size of the investment is the easiest first criteria to use when deciding who to approach for funding. After that, your target investor type will determine how you structure your pitch. There is also a different process to follow with Angel vs VC funding. Know the difference, and it will be much easier to get it right the first time.
What’s the difference between angel investors and venture capitalists? There is a BIG difference and it will change how you pitch, what you’ll say, and what to expect.
excellent video. thanks
SUPER valuable content dan
Happy to hear it was helpful :)
Awesome video!
Thanks!
both possible?
Thanks!
No problem!
Hi Dan, thanks for this video. I've been binge-watching your videos which I find very helpful. I'm an upcoming SaaS founder and hope to launch my startup (Wizlink) in Q1, 2021. I hope to have a direct chat with you someday.
That's awesome. Always open to chat when you're ready.
How can you know if its not a scam when investing in a company?
Hey Tony, check out these two videos where I talk a lot about investing in start ups and let me know what you learn!
1. Investing in 250+ SaaS Startups with Marvin Liao, Partner @ 500 Startups - Escape Velocity Show #43
th-cam.com/video/ZbZTBGGF6rs/w-d-xo.html
2. Investing In SaaS Enabled Marketplaces with Christoph @ PointNine.com - Escape Velocity Show #41
th-cam.com/video/jTKk0ljUYnE/w-d-xo.html
@@danmartell have u heard of david spargo ?
David spargo. Have yal heard of this guy?