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<h2>Understanding the Basics</h2>
When it comes to funding a startup, two common sources of capital are venture capital and angel investing. While both play crucial roles in the startup ecosystem, they differ significantly in their approaches, amounts, and expectations. Understanding these differences is key for entrepreneurs looking to choose the right type of funding for their business.

Venture capital typically involves large sums of money pooled from various investors, often managed by venture capital firms. These firms invest in businesses with high growth potential in exchange for equity. Angel investors, on the other hand, are usually high-net-worth individuals who provide capital to startups during their early stages. They often invest their own money and make decisions independently.

<figure id="figure-bgemrz9a82mehi7v29"><img id="bgemrz9a82mehi7v29" src="https://media.gettyimages.com/id/2226953528/photo/photovoltaics-factory-executives-planning-strategic-investment-decisions.jpg?b=1&s=2048x2048&w=0&k=20&c=14R01aGZijJrQmbHnEL7c9EedAg6LNUU8znN_1ktDww=" alt="venture capital meeting" class="object-cover bg-gray-100" style="aspect-ratio: 16/9"></figure>

<h2>Key Differences Between Venture Capital and Angel Investing</h2>
<h3>Investment Size and Stage</h3>
The size and stage of investment are primary differentiators between venture capital and angel investing. Angel investors usually fund startups at the seed or early stages with smaller investment amounts, typically ranging from $25,000 to $100,000. In contrast, venture capitalists invest larger amounts, often starting at $1 million, and focus on startups that are already generating some revenue or showing significant promise.

<h3>Due Diligence and Decision-Making</h3>
Venture capital firms conduct extensive due diligence processes to assess the potential risks and returns of their investments. This process can be lengthy and involves thorough evaluations of the business model, market potential, management team, and financial projections. Angel investors, however, may rely more on their personal judgment and experience, often making quicker decisions with less formal due diligence.

<figure id="figure-tro7zv5sgomehi7v29"><img id="tro7zv5sgomehi7v29" src="https://media.gettyimages.com/id/2196243667/photo/businessman-looking-for-business-partner-to-share-the-cost-of-startup-3d-rendering.jpg?b=1&s=2048x2048&w=0&k=20&c=Z2LacHyvOosnNUtWC8VgVoyGFAD9J6oX4Pstnxin4zE=" alt="investment decision" class="object-cover bg-gray-100" style="aspect-ratio: 16/9"></figure>

<h2>The Benefits of Each Option</h2>
<h3>Venture Capital Benefits</h3>
Venture capital provides substantial financial support that can propel a startup to new heights. Apart from the capital, venture capitalists bring valuable resources, including industry connections, strategic guidance, and operational expertise. These benefits can significantly increase a startup's chances of success and help scale the business rapidly.

<h3>Angel Investing Benefits</h3>
Angel investors offer more flexible terms and may be more willing to take risks on unproven ideas. They often provide mentorship and guidance based on personal industry experience, which can be invaluable for first-time entrepreneurs. Additionally, angel investors typically expect a longer timeline for returns, allowing startups more time to grow organically.

<figure id="figure-9th8pc36lmehi7v29"><img id="9th8pc36lmehi7v29" src="https://media.gettyimages.com/id/2198646319/photo/young-professionals-collaborating-on-laptop-in-coworking-space.jpg?b=1&s=2048x2048&w=0&k=20&c=jNYJ66C0DnpEXerTCGzGZbyGTVz6MXyiZdnwPtJrJlU=" alt="startup mentorship" class="object-cover bg-gray-100" style="aspect-ratio: 16/9"></figure>

<h2>Choosing the Right Path</h2>
Deciding between venture capital and angel investing depends on several factors, including the stage of your startup, the amount of funding needed, and your growth strategy. If your startup requires significant funding for rapid expansion, venture capital might be the best choice. However, if you are in the early stages and need a smaller amount with more personalized support, angel investing could be more suitable.

Ultimately, both venture capitalists and angel investors can be instrumental in a startup's journey. By understanding their key differences and benefits, entrepreneurs can make informed decisions that align with their business goals and vision.

<figure id="figure-m8fj9too69mehi7v29"><img id="m8fj9too69mehi7v29" src="https://media.gettyimages.com/id/1279508790/photo/young-female-adult-working-from-home.jpg?b=1&s=2048x2048&w=0&k=20&c=z0GknVNUYwMpZvqJXpdD0qxg0fxF0u7UAebsALkhkCE=" alt="entrepreneur decision-making" class="object-cover bg-gray-100" style="aspect-ratio: 16/9"></figure>

Venture Capital vs. Angel Investing: Key Differences and Benefits

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Since our last update, D3VC has made meaningful progress on both our portfolio and our platform.<h3>5 New Portfolio Additions </h3>We’ve recently added five standout companies across digital health, consumer products, climate tech, and fintech—each sourced and scored by our AI-powered diligence engine.<a data-mce-href="https://healthcareoriginals.com/" href="https://healthcareoriginals.com/" target="_blank" rel="noopener">Health Care Originals </a>(Respiratory Health) Their patented wearable doesn’t just monitor—it helps prevent asthma attacks using real-time AI alerts. They’ve recently secured key contracts in Texas and were just featured in Forbes. 👉 Full Update: <a data-mce-href="https://d3vc.ai/blog/-d3vc-portfolio-update--health-care-originals--hco" href="https://d3vc.ai/blog/-d3vc-portfolio-update--health-care-originals--hco" target="_blank" rel="noopener">HCO Spotlight</a><a data-mce-href="https://dxynxm04.na2.hubspotlinksfree.com/Ctc/L3+113/dxynXM04/VVPKgX6HMwtZW8c2tQ52Ysf1_W74N_GZ5wfB03N5LPbS83m2ndW69sMD-6lZ3lVW3KkYZH7j8xVqW7YGyf58Fk3z1W7cwW_H4F3QF8W5lz67f2jVZjqVH7b4V5pmfmDW72fMvK2r40SRW7bHcrB5rx3kWVkXHSX7Wn1KwW3ngBWQ97X2dKV2b7cb6HZZCPW6ycJQB2z8j7SN18HH063DYCtW6jzgvf6yH9t9W3GzYcx1DyZCTN7RV9BsYBPjdW20fFLK53spM1W8b9v8G1FhystN4h10qdY3dS3W3XpzTq76MqrNN6ms685VZL-Lf7xHFD204" href="https://dxynxm04.na2.hubspotlinksfree.com/Ctc/L3+113/dxynXM04/VVPKgX6HMwtZW8c2tQ52Ysf1_W74N_GZ5wfB03N5LPbS83m2ndW69sMD-6lZ3lVW3KkYZH7j8xVqW7YGyf58Fk3z1W7cwW_H4F3QF8W5lz67f2jVZjqVH7b4V5pmfmDW72fMvK2r40SRW7bHcrB5rx3kWVkXHSX7Wn1KwW3ngBWQ97X2dKV2b7cb6HZZCPW6ycJQB2z8j7SN18HH063DYCtW6jzgvf6yH9t9W3GzYcx1DyZCTN7RV9BsYBPjdW20fFLK53spM1W8b9v8G1FhystN4h10qdY3dS3W3XpzTq76MqrNN6ms685VZL-Lf7xHFD204" target="_blank" rel="noopener">EarthGrid</a> (Clean Infrastructure) Since we backed them last summer, they’ve launched an $18B joint venture, won the 2024 Startup World Cup, and gained telecom utility status in 46 states. 👉 Full Update: <a data-mce-href="https://d3vc.ai/blog/portfolio-company-update--earthgrid-pbc" href="https://d3vc.ai/blog/portfolio-company-update--earthgrid-pbc" target="_blank" rel="noopener">EarthGrid Spotlight</a><a data-mce-href="https://shop.nasaclip.com/" href="https://shop.nasaclip.com/" target="_blank" rel="noopener">Nasaclip</a> – Natural, drug-free congestion relief with 96% reorder rate and fast-growing DTC traction.<a data-mce-href="https://rubitection.com/" href="https://rubitection.com/" target="_blank" rel="noopener">Rubitection</a> – A patented medtech solution for early detection of pressure injuries—a $26B+ problem.<a data-mce-href="https://www.qnetic.energy/" href="https://www.qnetic.energy/" target="_blank" rel="noopener">Qnetic</a> – Long-duration flywheel energy storage for renewables; recent winner of the SuperCrowd Startup Pitch.<a data-mce-href="https://wefunder.com/" href="https://wefunder.com/" target="_blank" rel="noopener">Wefunder</a> – We’re backing the platform itself. Wefunder has helped over 1,900 startups raise $800M+.<h3>D3VC by the Numbers </h3><ul><li>225+ companies diligenced</li><li>13 investments made</li><li>Algorithm refined 2x to better predict breakout traction Our thesis is working—and our momentum is accelerating.</li></ul><h3>Let’s Talk: Ask Me Anything </h3>I’ve opened up a few slots this month to connect directly with LPs—whether to talk portfolio, deal flow, the raise, or anything in between. 👉 <a data-mce-href="https://calendly.com/crowdfundcapitaladvisors/crowdfunding-advisory-non-client" href="https://calendly.com/crowdfundcapitaladvisors/crowdfunding-advisory-non-client" target="_blank" rel="noopener">Book a time with me</a><h3>Next Close Coming Soon </h3>LPs in our next close will benefit from entry into this expanded portfolio at current terms. Terms may adjust in future rounds as we continue to build.<h3>Next Week: How You Can Help </h3>We’ll be sending a social media toolkit next week so you can help amplify what we’re building. Your voice makes a difference.Thanks for being part of the journey.

D3VC: New Investments, Major Wins & What's Ahead

We’re excited to share an update on one of our recent investments—Health Care Originals, a standout in respiratory health innovation.Why We Invested Health Care Originals has developed a patented wearable for asthma and COPD management that doesn’t just passively track symptoms—it actively prevents attacks. What stood out to us:<ul><li>AI-driven personalization: Their tech learns baseline respiratory patterns and uses AI to alert users and caregivers before deterioration happens. Future iterations will incorporate LLMs trained on proprietary care prompts, enabling scalable, intelligent patient guidance.</li><li>Validated impact: Clinical studies and 3rd party reports rank HCO’s device “best in class” with published evidence of significantly improved outcomes.</li><li>Unique IP moat: Rather than algorithm patents, HCO holds strong IP in device design and integration with the human body—an often overlooked but critical layer of protection.</li><li>First-mover advantage: HCO is building what continuous glucose monitors are for diabetes—only for respiratory care.</li></ul>D3VC Due Diligence Highlights Our questions focused on AI integration, commercialization timelines, market traction, and technical scalability. Key insights from their team:<ul><li>Sales Cycle &amp; Adoption: Their 12K-member waitlist converts as soon as payer contracts are signed. The sales cycle is ~9–18 months, targeting payers and MCOs directly.</li><li>AI Strategy: Already deployed for personalized baselines; future AI will handle care automation, making the solution more scalable.</li><li>Miniaturization &amp; Integration: Customers prefer current form factor for comfort and usability. HCO's onboard processing opens the door for third-party integrations in the future. </li><li>Resilient Trajectory: Past funding “gap” was due to a pivot post-COVID. That same pivot led to major contracts and a derisked, validated product in a new market. </li></ul>What’s Happening Now&nbsp; Recent internal updates from the CEO (shared with permission, but not yet public):<ul><li>Selected by the Asthma and Allergy Foundation of America to lead a rollout in Texas.</li><li>Approved as a Preferred Purchasing Partner by a healthcare coalition covering 400,000 lives—$5.8M ARR at full deployment.</li><li>Near-term MCO contract for 4,000 patients in Texas ($3M ARR), with 3 additional states and up to 10,000 members planned next year ($7.8M ARR).</li></ul>Media Recognition Health Care Originals was recently featured in <a data-mce-href="https://www.forbes.com/sites/geristengel/2025/04/21/reg-cf-activates-asthma-and-copd-care-investor-evangelists-for-hco/" href="https://www.forbes.com/sites/geristengel/2025/04/21/reg-cf-activates-asthma-and-copd-care-investor-evangelists-for-hco/" target="_blank" rel="noopener" data-mce-selected="inline-boundary">Forbes</a>, highlighting how Regulation Crowdfunding (Reg CF) enabled them to secure the necessary funding to bring their innovative, affordable respiratory disease solutions to a broader audience. The article emphasizes the role of investor evangelists in supporting HCO's mission to improve asthma and COPD care.Why It Fits the D3VC Thesis At D3VC, we leverage AI and proprietary data to identify companies with early signals of success. HCO checked every box—mission-driven founder, non-obvious competitive moat, and a business model built for ROI in a high-cost, underserved market.Our model saw HCO’s follow-on potential early, and the investment committee’s qualitative review confirmed it: this is the kind of founder-led, category-defining startup that delivers both impact and outsized returns.

D3VC Portfolio Update: Health Care Originals (HCO)

D3VC Investment: August 2024 | Netcapital Raise: $3.3M (part of $30M seed round)Since our investment in EarthGrid, the company has continued to validate our thesis: that breakthrough infrastructure companies can deliver both massive financial potential and transformative impact. Here’s what’s new:&nbsp; Major Technical Milestone: Tunnel Boring Robot (TBR) Last month, EarthGrid hit a critical engineering milestone by successfully testing the final core subsystem of its Tunnel Boring Robot—the continuous solid-state spoils removal system. After over a year of simulations on high-performance computing systems and seven physical iterations, the breakthrough system—with no moving parts—passed testing in April 2025.Why it matters: This innovation dramatically reduces mechanical complexity, boosts reliability, and reinforces EarthGrid’s ability to outcompete traditional boring methods. With this last subsystem in place, the team is now integrating it into the full TBR system.Next step: Field testing begins this fall near Fresno, CA, boring tunnels 1 meter in diameter. Commercialization of the TBR is expected in 2026.&nbsp;$18B Joint Venture with EnerTech (KIA) As previously shared, EarthGrid partnered with EnerTech, a Kuwait Investment Authority (KIA) entity, to deploy $18 billion in underground infrastructure projects in four phases, starting in the U.S. and expanding globally.Timeline Update:<ul><li>2025: Focused on signing contracts for U.S.-based JV projects.</li><li>2026: Revenue expected to begin as projects move into deployment.</li><li>A Commercialization Round is in the works to accelerate progress on the JV and unlock capital sooner. </li></ul>This JV positions EarthGrid to become a keystone player in solving grid congestion, deploying clean energy, and modernizing critical infrastructure with unmatched speed and efficiency.Global Recognition: Startup World Cup Winner EarthGrid won the $1M Grand Prize at the 2024 Startup World Cup, beating out 1,000+ startups globally. The win signals high confidence from global investors in EarthGrid’s long-term vision and team execution.Strategic Regulatory Moat With telecom utility status in 46 states, EarthGrid is uniquely positioned to build and operate high-speed broadband and utility corridors beneath public roadways—creating multiple monetization pathways from fiber, power, and robotic freight.&nbsp;Why It Matters to D3VC Our AI identified EarthGrid as an outlier early—combining hard tech, clean infrastructure, regulatory edge, and commercial ambition. The company’s rapid technical progress and global momentum continue to validate our data-driven investment process.We believe EarthGrid is not just building tunnels—they’re building the infrastructure backbone for the 21st century.

Portfolio Company Update: EarthGrid PBC

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At D3VC, we’ve been busy with our weekly diligence meetings, and we’re excited to share that we’ve made several new investments. I’ll provide more details on those in an upcoming update.In the meantime, I wanted to share two exciting developments with you:Sherwood Neiss' New Book – <a data-mce-href="https://www.amazon.com/dp/B0DXD74PXX" href="https://www.amazon.com/dp/B0DXD74PXX" target="_blank" rel="noopener">Investomers</a> After 15 years of covering and shaping this industry, I just released <a data-mce-href="https://www.amazon.com/dp/B0DXD74PXX" href="https://www.amazon.com/dp/B0DXD74PXX" target="_blank" rel="noopener">Investomers</a>, now available on Amazon. The book explores the rise of investment crowdfunding, the power of customer-investors in early-stage finance, and why this funding model is becoming a crucial piece of the startup ecosystem. I also dive into the role D3VC plays in this transformation. <figure id="figure-608gbsyr9mehkqif3" class=""><img id="608gbsyr9mehkqif3" src="https://cdn.durable.co/blocks/1fyhj3F5g193q8bWF6ZuzLg4GRGYDQZZFsIVvUofC6RGnAzftUusM64ydPhgwrZI.png" alt="" title="" class="object-cover bg-gray-100 " style="aspect-ratio: 1/1; object-position: 100% 95%;" data-corners="default" data-aspect="1:1" data-caption="" data-positionx="100%" data-positiony="95%" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/1fyhj3F5g193q8bWF6ZuzLg4GRGYDQZZFsIVvUofC6RGnAzftUusM64ydPhgwrZI.png" data-mce-style="aspect-ratio: 1/1; object-position: 100% 95%;"></figure>The 2025 State of Investment Crowdfunding Report We’re thrilled to release our most comprehensive industry report yet—over 200 pages of research and analysis covering the investment crowdfunding space since its inception. As a valued investor/follower, we’re offering you a free copy—just click <a data-mce-href="https://crowdfundcapitaladvisors.com/2025-investment-crowdfunding-report-the-future-of-private-market-investing-is-here/" href="https://crowdfundcapitaladvisors.com/2025-investment-crowdfunding-report-the-future-of-private-market-investing-is-here/" target="_blank" rel="noopener">here</a> to access the download.&nbsp; <figure id="figure-8p4bm33cnmehpiio2"><img id="8p4bm33cnmehpiio2" src="https://cdn.durable.co/blocks/13cDhakmvwPoU3T5AqUx1YCKhTre5Tm2MpzHCbyyor2LKtHKqGbsE7kGEIDuFgjt.png" alt="" title="" class="object-cover bg-gray-100 " style="aspect-ratio: 1/1; object-position: 50% 0%;" data-corners="default" data-aspect="1:1" data-caption="" data-positionX="50%" data-positionY="0%" data-fullWidth="false"/></figure>Stay tuned for more updates, including insights into our latest investments and what’s next for D3VC. As always, feel free to reach out if you have any questions or want to discuss any of these developments.The Team at D3VC

New Exciting Updates from D3VC – A Book, A Report, and More!

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At D3VC, we believe the future of early-stage venture investing lies in the strategic application of data science and artificial intelligence (AI). Our proprietary investment model, developed using the most comprehensive dataset from Crowdfund Capital Advisors (CCA), helps us identify startups with the potential for outsized returns while minimizing risk.What sets D3VC apart is our access to the industry’s only 100%-complete database of online investment transactions. This dataset, covering over 8,000 companies since 2016, provides us with deep insights into which startups are most likely to succeed. Our AI algorithm, trained on this data, identifies patterns that indicate whether a company is on track for follow-on financing or other markers of success.However, our approach isn’t just about picking winners. Instead, D3VC takes a broad, diversified approach, with a goal to invest in 200–300 early-stage startups. This level of diversification—much higher than traditional venture funds—will allow us to lower risk while maintaining the potential for significant returns. In fact, our AI-driven model has consistently outperformed traditional benchmarks, currently estimating annualized returns of 19.4%, compared to 7.2% for the S&amp;P 500.Our investment process combines the speed and precision of AI with the expertise of our human investment committee. The AI narrows down hundreds of opportunities to a select few, which our team then reviews and validates. By blending human judgment with cutting-edge technology, we can efficiently identify and invest in high-potential companies, positioning our investors for long-term success.At D3VC, we’re not just transforming venture capital—we’re building the future of it.

Blog

Venture Capital vs. Angel Investing: Key Differences and ...

D3VC: New Investments, Major Wins & What's Ahead

D3VC Portfolio Update: Health Care Originals (HCO)

Portfolio Company Update: EarthGrid PBC

New Exciting Updates from D3VC – A Book, A Report, and More!

How D3VC is Transforming Venture Capital with AI and Data