March 27, 2025 by investor
In startup fundraising, there are four distinct groups to consider for funding.
The list includes venture capital, angel investors, angel groups, and family offices.
Here’s the comparison of each source:
Venture capital
VCs have their diligence process and will take some time to complete it.
They write $150K to $500K checks on the first round.
They are very sensitive to valuation.
They often require board seats.
They provide the most support of any investor type.
Angel investors
They can make decisions quickly
They write $25K to $50K checks.
They tend not to be swayed by valuation as much as other investors.
They rarely require board seats.
They provide the least support.
Angel groups
They have a process that will take some time to complete.
They write $100K to $500K checks for a typical deal
They can be sensitive to valuation.
They sometimes require board seats.
They provide some support.
Family offices
They can act like angels and move quickly or they may have a more detailed process.
They write $100K to $250K checks on the first round.
They can be sensitive to valuation.
They sometimes require board seats.
They provide some support.
Consider these factors for your fundraise in selecting your target investor.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
Let’s go startup something today.
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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.
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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.
