Start-up companies look to Angel Investors for initial funding and then look to Venture Capital for later funding. Some of these companies, especially smaller companies should consider staying with Angel Investors.

The primary reason you should work with Angel Investors is control of vision. Having several Angel Investors keeps you from having one party with too much control and you're able to make the necessary decisions for you, your company and your shareholders. The Angel Investor is not likely to want to come in and run your business, instead they are relying on your expertise and typically are looking for everyone to succeed.

Angel Investors from Shark Tank

The Venture Capitalist doesn't care about you or the other people succeeding. Their mission is for their fund to do well. They are committed to the shareholders of their funds and not the shareholders of the company. That's why, when Venture Capital comes into play, that most founders are removed. The Venture Capital Company wants someone in the driver's seat that will do what they want the company to do. This can be bad news for the Angel Investors who seeded the company.

When raising capital, many people are inclined to tell you to raise it in larger chunks, I disagree. They say it's just as easy to ask for $100,000 as it is to ask for $10,000. Again, I disagree.

Investors are more likely to invest at $10,000.00 then they are at $100,000.00. The higher amount takes investors outside of their comfort zone and in many cases, there budgeted amount. I know in selling your supposed to ask for more and then work your way back, but in this case you need to think differently. Instead, work on selling the investment itself not how much the investment is. When you do this, you can literally convince the $100,000.00 person to invest, even though the minimum is $10,000.00.

What do you prefer?