Saturday: A quick thread on the difference between great Angels and great VCs.

Some early stage VCs resemble Angels but not too many.

Some Angels resemble late stage VCs but not too many

Thread/

VCs are primarily Big Picture Money Managers. They appreciate nuance but cannot focus on it, esp as their fund and portfolio scales.

Angels are primarily Tactical Operators. They appreciate big picture but prefer nuance where they can add value, esp if they work fulltime

VCs will trust the founder to *choose* what to surface during a chat and judge the founder accordingly (before AND after investment)

Angels will counsel founder on what they choose to surface during a chat and coach the founder accordingly (often after investment)

VCs will not devote resources to individual issues at your startup unless the issue is large enough to threaten your startup

Angels cannot influence large issues enough to make a difference but love diving into smaller individual issues to help out.

VCs are not your friend. They are fiduciaries first, friends later. Treat every conversation with them as if it may be used against you later.

Angels can become close friends and can often be your closest "off the record" confidantes. True founder whisperers.

VCs write multiple checks and are expect to show their support for you by putting their money where their mouth is.

Angels usually write just 1 check and can safely express their support with anyone without having to prove it financially.

VCs are herd animals often because their business model demands that they get into deals that are expected to return 100X

Angels can be contrarian early because their business model does not demand strict financial returns and its often more a passion play.

VCs cannot make firm commitments until they have buy in at the partner level regardless of how much conviction they have.

Angels can make commitments much faster and typically their word is their honor.

VCs are more free flowing pre Investment. Then they can get real rigid about process and structure to keep them happy.

Angels can seem real rigid pre investment to make them comfortable but can Then get super free flowing and friendly.

VCs fulfill a function of "capital to grow something thats working"

Angels fulfill a function of "capital that shows I support everything you will do"

/fin

p.s. Every single investing entity out there should write a 1 pager on their site thats titled:

"How we like to engage pre and post investment"