What are the differences between VC, seed, angel, super-seed etc. funds and investors? originally appeared on Quora – the place to gain and share knowledge, empowering people to learn from others and better understand the world.
When it comes to investors, there’s a lot to choose from. It can get a bit overwhelming for startups that are totally new to the business game, but choosing the right option will not only better your chances of attracting the best investor for your operation, but may even help you avoid issues in the future.
Here’s a simple breakdown of a few types of investors:
- Angel investors—Simple to understand investors since these guys are wealthy individuals who like to to invest their personal funds in startups. Although it’s easy to explain what an angel investor is, their role can vary quite a bit. Some angels are happy with a percentage of return for their investment while others demand a portion of ownership in the company. It’s usually a more informal setup with these investors as they will likely make choices based on instinct and interest rather than analytics. This can be a great option for startups who may have a tough time getting any traction from other types of investors.
- VCs—This type of situation is different than an angel in that it…