Angel investors use their personal funds to invest in startups in exchange for equity, typically after the business has some validation but before it's ready for venture capital.

Angel investors are individuals who invest their personal money in early-stage startups, typically writing smaller checks and often engaging in this as a side project rather than a full-time job.

Angel investors can have a substantive impact on the companies they invest in, but often their impact is marginal, meeting with a company only once or twice a year.

Venture capitalists can offer substantial capital, assist with hiring executives, and provide operational support, but they require significant equity and expect rapid growth to generate returns.

Angels are typically wealthy individuals investing their own money, while VCs invest other people's money and have a different decision-making process.

Understanding the investor's perspective is crucial; angel investors and venture capitalists have different priorities and expectations.

Angel investors used to form consortiums to write large checks for Series A financings, but this practice has changed, with individual checks becoming more common.

It's important for new angel investors to meet with many founders and companies to make educated judgments about investments.

Investors know that founders want high valuations and often leverage this by offering a desired valuation while asking for unfavorable terms.