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After running/talking at a few @joinClubhouse I think people dont understand what angel investing is...
"We're too early for VC but angels wont even give us money"
People seem to be under the impression that we will invest in anything super early, which isn't wrong but not true
"We're too early for VC but angels wont even give us money"
People seem to be under the impression that we will invest in anything super early, which isn't wrong but not true
1) I have this idea / just working on this product
We invest pre product/rev but you need to prove to us that with this round you can deliver on that and have a clear path. You spoke with customers, have clients lined up, spoke with employees you want to bring on etc
We invest pre product/rev but you need to prove to us that with this round you can deliver on that and have a clear path. You spoke with customers, have clients lined up, spoke with employees you want to bring on etc
2) Who is your team?
We invest in the team. Full stop
We have to believe that the solo founder / team that will figure it out because most things wont go according to plan.
Hopefully you can do most of the early stuff/dev in house / have the required expertise, less outsource
We invest in the team. Full stop
We have to believe that the solo founder / team that will figure it out because most things wont go according to plan.
Hopefully you can do most of the early stuff/dev in house / have the required expertise, less outsource
3) How much should I raise / runway?
A bunch of founders keep telling me I need X amount to get me 3-6months, which I think scares a lot of potential investors
It takes 3-6months to raise funding usually so if you only have $ for 3-6 months, you can't prove enough to raise more
A bunch of founders keep telling me I need X amount to get me 3-6months, which I think scares a lot of potential investors
It takes 3-6months to raise funding usually so if you only have $ for 3-6 months, you can't prove enough to raise more
4)Can you raise more?
If we invest in a startup raising 6months of $ (ideally 1yr+), will other investors consider you at that point? The funding may get you some traction but is that enough?
Once you raise $, you'll always be raising and need to think about next round.
If we invest in a startup raising 6months of $ (ideally 1yr+), will other investors consider you at that point? The funding may get you some traction but is that enough?
Once you raise $, you'll always be raising and need to think about next round.
5) Own the raise
I know it's scary but you're in control.
We're in business because of you and pay to help you (yes we take equity).
You tell us what you need, what you'll do with it and what you expect to happen. Sell us on that story.
I know it's scary but you're in control.
We're in business because of you and pay to help you (yes we take equity).
You tell us what you need, what you'll do with it and what you expect to happen. Sell us on that story.
6) Can this be a $100M scalable business?
Professional angels are in this to make minimum 10-20x their investment.
If this is a <10x opp, that's not angel investing.
I know it seems cool/trendy but you dont have to raise $ for everything.
Professional angels are in this to make minimum 10-20x their investment.
If this is a <10x opp, that's not angel investing.
I know it seems cool/trendy but you dont have to raise $ for everything.
Love those that love you first.
We love to get in early, work with the founding team and watch them grow.
We know this is hard and most of the time things wont work out. As much as we want fairy tale stories, it doesn't happen
Thanks to all the amazing founders out there!
We love to get in early, work with the founding team and watch them grow.
We know this is hard and most of the time things wont work out. As much as we want fairy tale stories, it doesn't happen
Thanks to all the amazing founders out there!
