Angels investors or Venture capital?

Unless I have misunderstood the concept, the key difference is the investment size factored also with the timing. Whereby an angel investor comes in at a higher risk, early stage (typically before the product has been developed), a VC will more likely make an investment at a second stage, and typically with a much higher investment.

As for specifics on the numbers, globally speaking, angel investors will invest anywhere from USD 20K to 500K, and a VC will invest anywhere from USD 500K up to 5M (or larger, depending on the business).

In our part of the world, though, VC's are not as 'venturous' and tend to hang around the angel bracket of financing... angels operate at the sub 100K level and big corporate investment houses don't look at tickets smaller than USD10M. The 'proper' VC level of funding is very very scarce...

Candide makes some very good points, it's also that you tend to be a bit closer to angel investors than you do VC's. I think that a lot of things chance once you take some VC financing, you suddenly have people to whom you have to live up to. With angels, you have less pressure and can explore more.

The best way to find an angel investor would probably be through your own personal network. I'd look for a VC online to find somebody powerful in the space your product is in.

Typically a financing strategy starts in the following manner:

1- Personal funding: Yourself family and friends 2- Angel Investors: They pour some financing in a startup, they have little control of the startup is run or how the product/service is designed 3- Venture Capital (Incubator): They choose the cream of the crop and they invest in them usually putting a board to gain some control ont he activities of the startup and benefiting them with their experience to steer them int he right direction.

Public offering of debt and equity follow after that.