Aniruddha Malpani | Inc42


As a thoughtful angel investor, I want to do my best to help the founder succeed. After all, if the startup does well then everyone benefits.

Now, the advantage of being an angel is you get a 30,000 foot perspective.

You are invested in the success of the startup, but because you’re not involved in the daily nitty gritty, you get a far better sense show of what’s going on at the macro level – something which the founder may miss, because he is stuck in the trenches and has to fire-fight the daily problems which plague founders.

It’s often easier for an outsider to see what’s going well, what’s not going well, what the strengths and weaknesses are. This viewpoint is complementary to the founder’s skills.

An Angel’s Perspective Versus A Founder’s Viewpoint

Good angels can help the founder to raise more money; improve his ability to market his product, and ensure good governance, so that the company remains on track to achieve success.

This can be a win-win, but the problem is that sometimes the founder doesn’t see eye to eye with the investor and this is when friction occurs.

Some entrepreneurs are extremely smart, but as an angel you sometimes worry about why they’re so short-sighted.

They all have strengths, but like all of us, they also have weaknesses and they need to fix these if they want to continue to grow.

However, especially when the founder is a techie, he’s so much in love with his product that he’s not willing to do what is required in order to be able to sell his product successfully.

Selling his idea to the next round of investors forces him to get out of his comfort zone, and he may not want to do this.

Continue reading …


Source: The Push-Pull Of Being An Angel Investor – Inc42 Media

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