While there are several options in equity financing, angel investors and venture capital are popular funding sources. Each type of investor has a different role in the equity financing process.
The infographic below explains the differences between angel investors and venture capital, including their entity type, funding stage, degree of involvement, and expected return on investment.
If you’re considering equity financing, pitching to angel investors or venture capital firms largely depends on the stage, industry, and needs of your business. Not all businesses are suited for equity financing, and some l businesses prefer debt financing. To determine which method seems right for your business, learn more about debt financing and equity financing.
