VCs bet on horses, Angels bet on jockeys

Jeffrey Carter explains how VC and angel investing are different from each other (emphasis mine):

Venture Capital is all about growth, but on a magnified scale. Generally, VC’s won’t look at a business unless it has a pre-money valuation of at least $7M, but most likely $10M. Of course, they do financial modeling too. VC’s bet on horses, not jockeys. They keep a stable of management types around waiting for a new horse to ride. 

Seed stage investing is similar to VC but very different. You are dealing with an entrepreneur that you cannot generally replace if things go south. You are betting on the jockey, not the horse. That heightens risk. Companies are pre-revenue. Very small. The market is validated, but it’s still generally an idea that may pivot several times before it hits the mark. Virtually every piece of analysis is very different. Once you analyze and validate an idea and market, then you have to build your confidence that the entrepreneur can actually execute. As an angel investor, you are going to mentor, but won’t be running the company.