hat is the easiest way to explain angel investing versus venture capital?
Angel investing is an individual investing directly in something the know and support, with a high tolerance for risk.
Venture Capital is a fund comprised of investors, managed by partners, investing in companies they believe can exit at a rate that will deliver a substantial Return on Investment.
These are important distinctions because an individual investing in startups but without knowledge of the space or high tolerance to lose it all, shouldn’t be called an Angel. And a managed fund without investors nor capable of surviving the term it typically takes to wait out a return on a fund (7–10 years) shouldn’t be called a venture capital fund.