I attended a great session by David S. Rose, an angel investor and partner in AngelSoft (doing great things in the Angel Group investing world) at BarCampMoneyNYC a couple weeks ago and learned that Angel Investors and Angel Groups are usually the stage between startup and VC. They are more willing to make smaller investments in less-proven ideas. By the time a company gets to VC stage, it needs to have a pretty well established.