What is the difference between a venture capitalist and an angel investor?

What is the difference between a venture capitalist and an angel investor Introduction: The Dynamic Startup Landscape Hello everyone, and welcome to today's video! The startup landscape is dynamic, with countless innovative ideas emerging every day. However, transforming these ideas into successful businesses requires more than just creativity and passion. Funding is a critical aspect, and this is where venture capitalists and angel investors come into play. Venture Capitalists: Strategic Investors with Deep Pockets Venture capitalists, often referred to as VCs, are institutional investors who manage funds dedicated to startup investments. These funds are typically sourced from various entities, including pension funds, endowments, and wealthy individuals. What sets VCs apart is their substantial financial firepower. With millions, and sometimes even billions, at their disposal, they can make significant investments in promising startups. The VC Approach: Diligence and Portfolio Management When a venture capitalist considers investing in a startup, they conduct extensive due diligence. This involves assessing the market potential, evaluating the team's capabilities, and scrutinizing the business model. VCs often take an active role in the companies they invest in, providing guidance, connections, and expertise. Additionally, VCs typically build a diverse portfolio, spreading their investments across various industries and stages of growth to mitigate risk.