Short answer question: What is the major difference between Angel Funds and venture capitalists

Informal Risk-Capital Market (Angels). The informal risk-capital market is the most misunderstood type of risk capital. It consists of a virtually invisible group of wealthy investors, often called business angels, who are looking for equity-type investment opportunities in a wide variety of entrepreneurial ventures. Typically investing anywhere from $10,000 to $500,000, these angels provide the funds needed in all stages of financing, but particularly in start-up (first-stage) financing. In Canada, angel investors became prominent with the emergence of CBC's hit show Dragons' Den. The show features five well-known business angels called Dragons, who, as a group, listen to pitches from entrepreneurs who want the Dragons to invest both their money and their expertise into their business. While the show does have its share of detractors, it is one of the most popular shows on the network and regularly attracts over a million viewers to each episode. Similarly, angel investors are known in the United States through the popularity of Shark Tank, a show on ABC that is quite similar to Dragons' Den. In fact, two of the original Dragons, Kevin O'Leary and Robert Herjavec, now appear on Shark Tank. If you would consider pitching to the Dragons, read Small Business Beginnings 6-3. SMALL BUSINESS BEGINNINGS 6-3 FIVE WAYS TO GET YOUR PITCH ON DRAGONS' DEN You have the perfect business idea. You are excited, and all you need is money and you are good to go. Wait a minute, there is a TV show, Dragons' Den! If you get on that, you will not only get the money you need but millions of Canadians will know about your product. So... how do you get on the show? Every year thousands of would-be entrepreneurs audition to get in front of the Dragons. But how can you stand out? What can you do to ensure you make the cut and appear on TV? Profit magazine author Deborah Aarts offers the following advice: 1. Go easy on gimmicks, such as models and children. Focus on the business idea. 2. Do your homework. Make sure you know who your competitors are and how you are different. 3. Have a good story. Be certain you and your idea are interesting to the audience. 4. Prove that you really need help. The show's executives state they are looking for companies that really need the money, not just entrepreneurs looking for publicity. 5. Keep your cool. Make sure you can answer questions and pitch under pressure. In Canada, business angels are represented by the National Angel Capital Organization or NACO. The mission of NACO is to professionalize angel investing and to support early-stage companies in Canada. 19 While the organization says there is no way to tell exactly how many angels exist in Canada, although the number is estimated to between 20,000 and 50,000, NACO says they have 4000 plus members and from 2009 to 2018 its members have reported on 2,224 investments in 1,472 companies totalling $853.3 million.20 Mary Ng, Minister of Small Business and Export Development says angel investments is vital for startups and early stage companies. 21 For example, when Mark Chaplin, founder, president, and CEO of Disc-Go-Tech, a manufacturer of DVD, CD, and video game repair kits based in Surrey, British Columbia, started his business, he found money by first draining his bank account and then asking family and friends for help. After exhausting his personal finances and raising as much money as he could from friends and family, Chaplin attempted to find capital from banks or venture capitalists with no success. He notes, Neither myself nor my partners had any credit or assets, so the banks wouldn't look at us, and venture capitalists weren't interested unless we were looking at $1 million to $5 million. Chaplin then looked for angel financing to get the funds needed to start his company. He eventually succeeded and raised $300,000 for 20 percent of his company from a pair of angel investors.22 Similarly, Shelby Taylor, founder of Chickapea Pasta, from Collingwood Ontario, developed an idea for a healthier chickpea lentil pasta. Taylor had purchased a health food store and notice that most people still ate lots of pasta but were not thrilled about the nutritional contents of the product. Taylor decided to create her own healthy pasta using chickpea and lentil flour, which resulted in a pasta that was high in protein, fibre, and iron. To raise the funds needed to bring her product to market, Taylor completed a Kickstarter campaign, and then successfully raised money through angel groups in Ontario. Taylor said she did this all pre-finished product and is grateful for the support of the angel financiers.23