FAQs

Angel investors and banks differ significantly in their approach to funding. Angel investors are individuals who use their personal wealth to invest in early-stage companies, often seeking equity in return and bringing their own expertise and connections to the table. They are willing to take on higher risks, investing in ventures with uncertain outcomes and aiming for substantial returns. In contrast, banks provide loans to established businesses with a proven track record, relying on deposited funds and requiring collateral and a strong credit history. Banks focus on receiving regular interest payments and are less involved in the business’s day-to-day operations, reflecting their lower risk tolerance and preference for predictable returns over the high, but uncertain, rewards sought by angel investors.

Angel investors and venture capitalists both provide essential funding to startups, but they differ in several key areas. Angel investors are typically high-net-worth individuals who invest their own money into early-stage startups, often during the seed or initial phases. Their investments are usually smaller, ranging from a few thousand to a few hundred thousand dollars, and they may take a hands-on approach, offering mentorship and guidance, though some remain more passive.

Venture capitalists, on the other hand, manage pooled funds from multiple investors, often institutions, and invest larger sums, usually starting in the millions, in companies that have already demonstrated some level of success and are looking to scale. VCs are generally more involved in the companies they invest in, often taking board seats and playing a strategic role. While angel investors may be more willing to take on higher risks due to their personal investment and may have more flexible return expectations, venture capitalists tend to be more risk-averse and seek higher returns, with a clear focus on achieving significant exits, typically within a 5-10 year timeframe.

Unlike a bank, DCSS does not lend money based on an interest rate simply because DCSS does not seize assets if things go sideways.

This means we have to employ far more creative options. Generally we work with you for several months before we negotiate how the deal would be structured as it is important that we understand your business as much as possible so we can figure out how we can best help you grow but also mitigate our risk.

Typical deal structures include company shares, profit sharing, revenue-based repayment or some combination of the above.

Company shares means we provide a certain amount of funding for an agreed number of shares in your company.

Profit sharing means we provide funding in exchange for a share in the future profits but repayment doesn’t kick in until the company meets specific profit goals.

Revenue-based funding means DCSS gets paid back out of future revenue but again, it doesn’t kick in until agreed upon revenue goals are hit.

In all cases, unlike a bank, we act as a business advisor in order to help remove obstacles that prevent your company’s growth. Our agreements do not require a personal guarantee nor do we attempt to recoup potential losses if things don’t work out. We bet on you, not the market.

We’re here to help as our success is 100% tied to your success.