Venture capitalists belong to a company or a firm and are employees of these companies that invest other people's money in companies. The money that is to be invested is not personal to the investment capitalist but instead is made up of money paid to the firm from corporations, individuals, pension funds and foundations. Those that invest are called limited partners and those managing and working with the startups and are responsible to ensure it is developing are called 'general partners'. VCs will identify businesses with high growth potential and invest in the company and will have a say in the companies running. Unlike angel investors, VC-backed investment often involves very large amounts of money and can be in the multi-millions of pounds.
Angel investors are private individuals that operate independently. Angel investors often invest in early stage businesses and take a personal equity in shares. Unlike venture capitalists, angel investors don't typically offer assistance in building a company and the amount that they invest is extremely flexible. Whilst the angels might have valuable advice, the level of their involvement is their choice. Unlike VC investment, angel investors, whilst having a share, will not have a seat on the company's board.