Like any startup, I was particularly feisty about raising funds for my business. I was positive that my spectacular initiative will bowl over venture capitalists and angel investors alike and they will fall over themselves to invest in the startup. And I was primed to accept the best offer per se.
But when I was discussing my objectives and strategies with the Plan Writers team - https://www.planwriters.net/ - the experts explained to me that angel investors and venture capital are fundamentally different and I cannot expect to target both!
Now it is clear to me that angel investors are interested in promising startups (like mine) and provide seed financing from their own finds. The benefit to me is that not only are they willing to take on the risk of failure, but they can also serve as an informal mentor to me with their valuable advice and direction.
On the other hand, a venture capital firm presents a collective of different people’s funds and they will not touch startups with a barge pole! They are interested in good returns with low risk and will come in only when I have can prove my caliber with numbers. I was warned that they will require a board seat to safeguard their investment.