Angel Investor is an affluent individual who provides capital for a business startups and early stage companies using a high-risk, high-return matrix usually in exchange for convertible debt or ownership equity. Venture Capital is a type of a private equity capital provided as seed funding to early stage, high potential, high risk, growth up companies/entrepreneurs. Distinguishing Feature: Angel investors participate in the management of the business but venture capitalists do not take part in the management of the business.