We regularly get asked about the fundamental differences between angel funding and crowdfunding. One of the main differences that separate the two is that angel investment is largely active, as opposed to crowdfunding which is passive. This is especially true of our own network of angels, who not only provide investment, but support and mentoring. Research suggests angel investment can significantly improve the growth and success of a business.
Crowdfunding reaches a worldwide audience while angel investment tends to be local. This is especially important if a business is looking for support. Our network of angel investors have a vast amount of knowledge and experience, and have quite literally ‘been there and done it’. This helps founders avoid the common pitfalls that others experience, as they learn from angels who have not only made the mistakes, but learnt from them.
We have detailed some of the key differences in the table below:
