He may simply find the idea compelling. Or there may be something about the product or the market strategy he believes in. Most angels require a strong management team with entrepreneurial talent, and sometimes one particularly impressive person is enough to sway an angel. Angels also typically have a hands-off attitude to management and don t require a seat on the board. When you have used up your angel capital and are ready for greater growth, you might consider venture capital.
Venture capitalists are professional investment firms.
The vast majority of them are clustered in Silicon Valley, although other areas of the country including Seattle, Boston and Austin, Tex. have a fair number as well. You can find the names of some of the biggest venture capital firms by looking at the prospectuses of high-profile companies that have recently had IPOs. These prospectuses can be found as part of a company s registration statement on the Securities and Exchange Commission s Edgar website. They will list the major shareholders of the company, several of which will likely be venture capital firms. Strong management is also important, although venture capitalists often expect to provide or bring in additional management expertise.