Angel vs Venture Capital funding – which suits you best?

by Startacus Admin
Ofri Ben-Porat is CEO and co-founder of mar-tech startup Pixoneye – an advanced computer vision and AI technology delivered on device that offers in app content personalisation for brands. Here, Ofi writes for Startacus on the measured approach Pixoneye took when looking at Angel or VC funding.

"I think I can safely assume that everyone visiting Startacus will be involved in at least one startup, and as co-founder and CEO of one, Pixoneye, I thought it might be useful to share my insight into what we’re surely all searching and wishing for – funding! But it’s not always as simple as we’d like it to be. Let’s face it, it’s not every day someone comes along and offers us a shiny bag of coins.
Yet too often I’ve seen startups accept the wrong type of funding, often hindering or causing irreparable damage to its long-term prospects. So which type of investment suits you best?
Angel investors invest based on emotion. They’re looking for passion projects, and want to be as excited about your business as you are. They want to trust your team and product. The ideal angel investor behaves like a mentor. They can advise you, introduce you to their contacts and give their own insight about your industry. It’s not just a financial investment – you’re tapping into their expert knowledge.
On the other hand, Venture Capital funders have to invest on behalf of clients – and deal with all the pressure that comes with. While they’re putting faith in your product or service, there is far bigger burden to scale and return on investment as soon as possible.
For startups like ours which can’t survive on a bootstrap budget, funding needs to be very considered. It often works best with a close collaborative relationship, with investors aligning to the same vision and idea of outcome.
When we got to a great stage of our journey, with two offices, three rounds of funding, a fully functioning product and R&D team, we were expected to go for VC funding. However, we decided to continue with angel investors as we felt they’d have patience with more realistic expectations as to when they’d see returns. We also really feel we part of each other’s success; not just another company in a wide portfolio.
If you’re ready for rapid expansion, you have your product and message nailed, and are ready to scale, perhaps VCs are the best option for you. You’ll more likely see the deeper pockets you need. However, don’t chase this from the beginning. Do your research to find which angel investors can provide you the best mentorship, while allowing you to give your business the attention and patience it needs to grow and flourish."
Ofri Ben-Porat is CEO and co-founder of mar-tech startup Pixoneye – an advanced computer vision and AI technology delivered on device that offers in app content personalisation for brands. Ofri also consults for Waze and served as senior marketing advisor to the minister of tourism in Israel prior to launching the company. Pixoneye has recently been shortlisted for start-up of the year for the 2017 BIMA Awards and has been featured in Marketing Week’s 100 most disruptive brands list.
Subscribe to our newsletter
If you would like to receive our startup themed newsletter, full of the latest startup opportunities, events, news, stories, tips and advice, then sign up here.
The lowdown on Manchester-based startup Sticky and its innovative no-code solution to help businesses turn any physical space into an engagement opportunity.

Tobin Capital continues to expand its portfolio by investing in pop-up marketplace Sook, the startup on a mission to revolutionise the high street.

Sodexo and L Marks open call for applications from innovative startups and scaleups to join their inaugural Sodexo Healthcare and Seniors Accelerator.

The group payments solution that's better for businesses and customers alike, thanks to innovative fintech startup Hands In.

The lowdown on FuturePlus, the startup that's on a mission to make sustainability accessible, achievable and affordable for all businesses.

John McLachlan, author and co-founder of Monkey Puzzle Training & Consultancy examines the differences between action-oriented and reflective leaders and which approach is best.

The fitness app that's not just about physical fitness; GoJoe helps employers to engage, motivate and connect their people across all pillars of wellbeing.

Now in its fifth year, North West England water firm United Utilities opens call for Innovation Lab, its pioneering ideas incubation programme.

Not-for-profit OneTech has spunout from Capital Enterprise to expand its offering and continue its mission of creating a more equitable, diverse and supported startup ecosystem.

London-based startup Deep Render tackles the internet’s data and bandwidth challenges via its innovative AI-powered file compression technology.
Published on: 16th August 2017
If you would like to enable commenting via your Startacus account, please enable Disqus functionality in your Account Settings.







- Startup Sook Receives Investment from Tobin Capital 24th May 2023 Tobin Capital continues to expand its portfolio by investing in pop-up marketplace Sook, the startup on a mission to revolutionise the high street.
- L Marks Seeking Startups and Scaleups for Sodexo Healthcare and Seniors Accelerator 23rd May 2023 Sodexo and L Marks open call for applications from innovative startups and scaleups to join their inaugural Sodexo Healthcare and Seniors Accelerator.
- United Utilities Innovation Lab launches call-out for innovative ideas for fifth programme 18th May 2023 Now in its fifth year, North West England water firm United Utilities opens call for Innovation Lab, its pioneering ideas incubation programme.
- OneTech Spins Out from Capital Enterprise to Support Underserved Communities in Tech Across the UK 18th May 2023 Not-for-profit OneTech has spunout from Capital Enterprise to expand its offering and continue its mission of creating a more equitable, diverse and supported startup ecosystem.