Frequently Asked Questions

UK: What is the difference between friends and family, angel investors, and VCs in the UK market?

"Friends and family" investors are usually the first people to back an early-stage business. They are usually (but not always) known to the founders and take a hand-off approach to the governance or running of their investment. 

"Angel" investors are usually individual investors and/or high-net-worth individuals who invest their own money in early-stage startups. They can be useful industry contacts, advisors and evangelists for the business.

"VCs" are professional venture capitalists usually working as part of a venture capital fund that systematically invests in high growth companies, possibly with a sector and/or expertise focus. VCs usually invest greater amounts than F&F or Angels but that comes with additional requirements in terms of governance rights (e.g. board seats) and downside protection (e.g. liquidation preference, anti-dilution rights, etc). 

Learn More: UK Founder Series: Get Ready to Raise