Following are some of the distinguishing points between angel investors and venture capitalists:
1. An angel investor works alone but venture capitals are part of a venture capital firm.
2. Angel investors invest typically between $25,000 to $1,00,000 of their own money whereas venture capitalists invest $7 million on an average.
3. Angel investors primarily provide financial support whereas venture capitalists provide guidance for your business/ startup idea along with financial support.
4. Angel investors invest in early stage in a company. Venture capitalists invest in an early stage company or developed company depending on what the focus of their firm is.
5. Angel investors don’t do a lot of due diligence given the money that they are investing is their own whereas venture capitalists have to mandatorily do due diligence as they are investing someone else money in the business idea.