The insanity of Angel Investors
19 July 2010
As published on Doug Richard’s School for Startups
The first outside money an entrepreneur gets usually comes from friends and friends of friends. Why? Because they know the entrepreneur personally and they know where he lives. They are the father that buys a company a new computer system for video editing, the sister who gives a new developer enough to buy an IPAD, the long lost uncle who comes up with the first fifty thousand pounds for a new hair salon. These first investors are crazy enough to take a risk on a business with no assets, no income, no customers, and no provable business model. Properly put, your first “investments” should usually be called gifts.
After that first money in, your next request for money will probably go to an “angel investor”. They come in when your business needs a few hundred thousand pounds to a million pounds to grow. By the time you approach angels, you usually have something to show for yourself. Maybe it’s a patent. Maybe it’s a few customers. Maybe its a few extra dollars in income every month. Maybe you just have a great team and a great business plan. The important thing is that you can demonstrate you’re ready to launch what lots of people think will be a properly profitable business.
As you begin to approach angel investors, you need to know one thing about them. They are crazy. You need to know this so they don’t drive you crazy too.
Here’s a quick overview of just how and why most angel investors are insane.
Being born under this sign determines many talents, as well as other characteristics that may not be so commendable. Rats are very lively and need a lot of mental and physical stimulation. They can be calm and perceptive, but sometimes their brains can cause a mental restlessness, tempting them to take on too much, only to discover they are unable to meet their commitments. Rats are blessed with one of the best intellects going. Add to their intelligence a curiosity and a bright imagination, and they seem as sharp as a needle.
Detailed Description
of The Water Rat
