Raise Millions by Hustle Fund VC Page 15 stick with angel investors. Another downside is that angels might not be able to participate in your later rounds when the check sizes get bigger and the valuations get higher. What is a venture capitalist? On the other hand, venture capitalists (VCs) can write larger checks than angels, ranging from $50K to millions of dollars, with the opportunity to participate in their portfolio’s later rounds. Here’s how: a venture capital firm raises money from their investors called Limited Partners (LPs). Then VCs invest all that capital into startups and divide the returns among all the LPs (and themselves). VCs can be extremely well-connected. They often introduce their portfolio companies to other VCs, potential business partners, and even new hires. In later stages, VCs can also be great board members to help guide the next chapters of the business. The fact that VCs have LPs is both a burden and a blessing. A blessing because LPs enable VCs to do their work. Without LPs, VCs wouldn’t have the capital to invest in startups. But they’re also a burden. Because VCs are essentially stewards of their LPs’ money, they’re obligated to invest only in deals they truly believe will give them a 100x return. This means if a VC invests in a startup at a $1M valuation, they are hoping that your business will exit or IPO for a $100M valuation. hustlefund.vc / @hustlefundvc