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4. VC’S TAKE A LONG TIME TO DECIDE
Venture Capital funding involves a huge amount of risk. So, VC’s usually takes lots of time to
decide whether they want to undertake investment or not. Venture funding may be a great
source of availing funds for the start-ups. However, the long wait before receiving the funds is a
huge drawback.
5. APPROACHING A VC CAN BE TEDIOUS
A lot of investment opportunities through uninvited emails overburden the VC’s. Due to this a
lot of business proposals go unnoticed. One of the ways to approach the VC is through a mutual
connection.

Differences between angel investors vs. venture capital

Basis Angel investor Venture capital

Work Angel investors, sometimes known Venture capital firms, on the other
as business angels, are individuals who hand, comprise a group of
invest their personal finances in a startup. professional investors. Their capital
will come from individuals,
corporations, pension funds and
foundations.

Angel’s investors are primarily there to A venture capitalist looks for a
Responsibili offer financial support. While they might strong product or service that holds
ties provide advice if you ask for it, or strong competitive advantage, a

introduce you to important contacts, they talented management team and a
are not obliged to do so. wide potential market.

Stages of investment Angel investors specialize in early-stage Venture capitalists, on the other
businesses, funding the late-stage hand, invest in early-stage
technical development and early market companies and more developed
entry companies, depending on the focus
of the venture capital firm

Due diligence is an area that has provoked Venture capitalists need to do more
Due diligence. a lot of debate for angel investors over the due diligence, given that they have
years. Some angels do almost no due a fiduciary responsibility to their
diligence and they aren't really bound to, limited partners.
given that all the money is their own.