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What are the downsides of getting money from an angel investor or VC / VC firm? Should you try to obtain a loan from a bank first before searching for angel investment or venture capital? Since banks are pretty hard to get money from, if you do manage to obtain money from a bank, does that mean that you have a more solid business plan? If you do get approved for a business loan, should you still consider using angel investment / venture capital instead? If so, why?

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Angel investment can be costly, I mean, they require a high percentage starting at 10% and from then on depending on the angel.

They tend to involve too much with the company they fund, and it may lead to misunderstandings.

There's no register of angle investors, yes for VC's, but angels don't have national recognition as Vc's do.

Those are the ones I can think of right now, but there's a viedo by Mitch Kapor Foxmarks that is a lecture on the disadvantages of venture capital funding. You can see it here.

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