You have a great idea for a start-up business and you are, probably, short on capital, so raising money is your first concern. You are going to need outside investor groups, therefore you need to know the difference between angel investors and venture capital firms.

Anytime is a challenge for entrepreneurs looking for venture capital but now even more so. Competition is fierce and the jousting for the prize of venture capital funds bloodier.

Angel Investors and Equity Partners provide funding for companies with high potential. They differ in their expectations about cash flow and risk, the former preferring a steady flow and lower risk and the former expecting payment later with a high return. These investors have weak links with the founders, unlike families or friends, and can provide a much needed balance in the strategic direction of the firm or non-profit.