Kumaran should consider the following relevant differences in order to make his decision between angel
investors and venture capital:
Angel investors:
• 98% of the time they are an individual investor
• They are willing to invest in a start-up businesses
• Their investment amount is usually between $50,000 and $100,000 but sometimes they can go up
to $1 million
• They have contacts that they can contribute as well as experience they can share
Venture capital:
• They are a company or a business rather than an individual
• They usually are not very interest in the early stages of a business unless there are appealing
reasons to be
• They will invest anything over $1 million
• They have strong contacts but they lack experience
For the early stages of his business Kumaran best source of funding would be the angel investors. He
should consider making a name for his business and getting the word out. Once he has his business up
and running well, that’s when he can bring in the venture capitals in the long term. They would help him
expand the business in the long run once he has proven that the business is capable of doing so and keep
up with the expectations.
