Startup Funding Espresso – Comparing Funding Sources

Comparing Funding Sources

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

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.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact [e-mail]   

Please follow, share, and leave a review.

Music courtesy of Bensound.