| Angel Investors and Equity Partners provide funding | | | | by an angle investor and enjoyed the process is very |
| for companies with high potential. They differ in their | | | | likely to become and angel investor. |
| expectations about cash flow and risk, the former | | | | Both Angel Investors and Venture Capital Funds |
| preferring a steady flow and lower risk and the | | | | actively support the company growth and diminish its |
| former expecting payment later with a high return. | | | | commercial risk. They are looking benefits through |
| These investors have weak links with the founders, | | | | the sale of shares in a relatively short term, less than |
| unlike families or friends, and can provide a much | | | | 10 years. The sales of shares can be executed by |
| needed balance in the strategic direction of the firm | | | | the sale of the whole company, a merger with |
| or non-profit. They would not invest in a lifestyle | | | | another company, shares bought back from other |
| business. Savvy entrepreneurs chose these types of | | | | investors, including a founding member, or traded on |
| investors to provide knowledge, experience and | | | | the stock exchange. Payment of dividends is less |
| contacts. | | | | important to Angels than the accumulation of share |
| Angel investors are individuals who want to take an | | | | value. |
| active role helping a young company with high | | | | Equity partners generally invest capital, have a wide |
| growth potential. They participate in strategic | | | | range of involvement and share some risks. They do |
| decisions by having a board position, and usually | | | | not expect the company to grow rapidly and tend to |
| support sales, operations, relationships with suppliers | | | | prefer a steady return in the form of dividends. |
| and third parties, and other specific areas in the | | | | Equity partners might also work part or full time for |
| industry where the company is involved. They invest | | | | the company, and tend to be more involved in |
| their own money and usually are former | | | | managerial tasks than strategic direction. They can |
| entrepreneurs who have been successful creating | | | | provide legal or accounting services. This type of |
| and selling a company and wish to support others do | | | | investor does not expect a clear exit option. They |
| the same. | | | | prefer stability over growth. They do not have a |
| A successful entrepreneur who has received funding | | | | clear exit strategy. |