Angel investors are among the leading sources of funding for many technology firms. Knowing how these investors think and evaluate a possible investment is therefore vital for any tech start up seeking funding.
With a nod to Garage Venture’s Guy Kawasaki and his Top 10 Lies of Venture Capitalists, I offer my Top 12 Lies Angels Tell. When I showed a draft to my angel friend Malcolm, he turned to me and said, “wow, this is really cynical!” So let me acknowledge that first.
1. “That was a good presentation!”
I have to say something positive, but you’re not getting me to write a cheque. The fact is, most funding pitches are terrible; they’re more product pitches with an appeal for money tacked on at the end.
Passion, yes; every entrepreneur has heard by now they must show great enthusiasm for their endeavor, but show me how I can get my money back someday, too. Who will acquire you? Are you going to raise venture capital that will keep me in the deal for six, seven, eight, nine years? Or are you aware of the new trend towards early exits? Show me how I can get my money back in three to five years and even I’ll be saying, “That was a good presentation!”
2. “Fix these few issues and come back in six months.”
This is so much easier to say to the entrepreneur instead of>>> READ MORE at: