Entrepreneurs and directors frequently ask me whether angel or VC financing would be best for their company. Fortunately, the answer is usually easy to determine based on the characteristics of the company and its current shareholders.

The Corporate DNA of angel investors and venture capital investors is quite different. It's rare to find a situation where one choice is not clearly better.

The table below describes the tests to determine whether angels or VCs are a more desirable source of financing for your company:

The rest of this post has the notes to this table and a list of other great artilces on this topic.