On average, VC-led rounds are higher-quality opportunities. Angel rounds can be ones that VCs chose not to lead so suffer from adverse selection. This effect may be smaller in the current market where there is less VC money.

On average, Angel rounds are priced higher than VC-led rounds because VCs see more opportunities and are better informed on pricing. Lead VCs also have an opportunity to set a price with a term sheet whereas Angels are often price takers. This effect may be larger in the current market where valuations have dropped.

There are many exceptions.

Post inspired by Ella Goldner (Levy) of ZINC's question in Alma Angels, yesterday.

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