Investor Definitions

Today we’re talking about investor definitions. It’s not always clear what type of check an investor will write, especially in these rapidly changing times. So here’s a rough outline of the definitions for investors based on their initial check size:

Angel Investors — Not to be confused with Angel groups, these are individuals who usually don’t invest fulltime and are investing their own money. You would expect their check size to range from $5k up to $100k.

Micro VCs — These are investors with a smaller fund, usually under $100M. Often a small team of up to 3 partners, investing from $50k to $500k in most cases.

Seed Funds — With a team of 3 to 20+ investing professionals, seed funds usually have more than $100M in their current fund and invest $500k to $5M initially.

Big VCs — You’re likely to see a huge team, numerous different types of funds, investing at various stages and all across the globe. Initial check sizes start around $5M and go up from there.

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Ash Rust

Ash Rust

Pre-seed Investor. Email: ash@sterlingroad.com. B2B, US only. I work with founders for 3 months before investing. More info: http://SterlingRoad.com/process