How Do You

**freedom.project** · 08-28-2007 12:21 AM

What are the difference between Angel Investors and Capital investors and how to you go about contacting them?

**akula** · 08-28-2007 07:13 AM

http://www.informaworld.com/smpp/con...3867559~db=all

**Zak Z** · 08-28-2007 07:24 AM

Angel investors are typically individuals or small groups of individuals that invest money in new companies, typically anything up to about $500,000. Angels invest their money in new businesses for various reasons, though they typically take a more hands on approach and like to play a more active role in seeing the business succeed.

Venture capital investors, sometimes referred to as "VC's" or "institutional investment", are the next step after angels. They typically invest between $500,000 - $5,000,000 or more and often choose to wait until a business has a proven business and revenue model with the potential for explosive growth. VC's will typically be looking for a large stake in your company in exchange for their money, often in the area of 70%, and will be looking to "cash out" in 3-5 years through a sale to a larger company or an initial public offering.

You can find angel investors everywhere. In recent years more and more angel investors are coming together to form angel groups, which are typically geographically based around a certain area and/or certain types of industries that they know. You should be able to find the website of an angel group in your area by searching online. On the website, they will tell you exactly what types of businesses they are looking for and what they want to see in a presentation. As with all aspects of entrepreneurship, networking is everything in this arena, and your best bet for hunting down they cash.