When I started doing research on Angel Investing before my book arrived, my first thought was, “is this like Shark Tank?”  While reading these chapters, I am reminded of how important it is to network.  Even in the learning community for this course, you never know who you are going to meet that can completely change your life and the life of your business.  I am also reminded of the book we read in an earlier class, It’s a Jungle in there, where he partnered with the build a bear to make the dinosaurs.  This helped both businesses. 

Networking as said above is important.  These potential angel investors have more than just money, they have resources, a network, and experience to bring to the table.  As an entrepreneur, you have to be willing to give up some of your company for this opportunity.  As stated in the book, you need to know what you are willing to give up and what kind of deal you want to make.  It can be a hard decision giving up part of your business, but you have to look at the big picture.  Where will this deal take you and what will you gain?  You need to think outside the box and be innovative. 

            Doing your research on investors is important as well.  The partnership needs to make since for both parties. This opportunity is to take some of the pressure off of your shoulders, not make it worse.  In order for everyone to be successful, this partnership needs to be strong.  Of course there will be disagreements and stress throughout, but looking at the big picture, knowing that you need this angel investor to succeed, this relationship will hopefully be strong so everyone succeeds. 

            In closing, after this first reading, we see that networking, building relationships and investing is important. If you want to grow your business, but do not have the means to do so, this is the way to go.  I look forward to reading more about angel investing and discussing this with you all.

Reference:

Amis, D., & Stevenson, H. H. (2001). Winning angels: the seven fundamentals of early-stage investing. Financial Times Prentice Hall.

9 Comments

  1. Katherine,
    I love the reference to Shark Tank! Such a great show. Great job on this post. I have not yet received my book and am about to begin my research on this topic, but you definitely made some great points. There really are so many things to consider. The obvious ones as you mentioned being how much are you willing to give up? What is the investor bringing to the table? Does the partnership make sense for both parties? I also think the personal relationship needs to be highly considered. Is the investor someone that has a similar vision to you? Is it someone you trust? Do you have respect for that person? Just because a partnership looks good on paper doesn’t always mean it is going to be smooth sailing. Understanding an investor, their values, visions, and goals is very important in my opinion.

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    1. Zach,
      I agree, the partnership has to make since. Also, since you are making the choice to have an investor, you have to be willing to give up some control and be okay with that. That is where I know I would struggle. Doing your research is a must and truly understanding that they are bringing to the table something you need. Hope you get your book soon, and I also had to research Angel Investors before mine came just so I would see what I was getting into.

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  2. Katherine,

    Great post and you have some excellent thoughts. If I am honest, I had no idea what an angel investor was before diving into the book. However, I think your analogy of “Shark Tank” is spot on as they are conducting angel investing on prime-time television.

    It will always be scary when we ask for outside help from others. Regardless of whether that help brings money or expertise, it will always go against our soul as entrepreneurs. Entrepreneurs have an innate spirit of independence and are self-driven, but we also need to know or learn when to ask for help. As you mentioned, several businesses have thrived from swallowing their pride and allowing others to help out. Great post!

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  3. Joe,
    I had to research angel investors before the book came as well. Giving up some of the control of your business can be a scary thing, but that is something one has to come to terms with in order to get to where they want to be. Some of these investors bring not just money to the table, but a network of knowledge. I do feel you need to research extensively before you make that decision. I also feel you have to step out of your comfort zone to thrive sometimes.

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  4. Hi Katherine,
    I, too, enjoyed the reference to Shark Tank. Although I do not watch it much anymore, I really enjoy it. Another one that I enjoy is the Prophet with Marcus Lemonis. I agree with your comment above that when giving up control, it can be scary. I have worked for CEOs that have completely bootstrapped the business and ones that have received funding. The ones that received funding and leveraged the relationships from the investors had greater monetary success.
    Best,
    Ed

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  5. Hi Katherine,

    Wonderful post and thought-provoking discussion. I was also only vaguely aware of what “angel investing” was and I found this chapter particularly helpful in explaining the process. I completely agree with you– it is important to be very realistic about what you are willing to give up, especially when it comes to the vision of your company. It is good to find investors that are supportive of your mission and objective enough to help offer suitable guidance. Great work, as always!

    Cheers,

    Taylor

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  6. Hey Katherine,

    I enjoyed your reflection and analogy of the “Shark Tank” television series. I have learned over the years that networking is essential. Still, this class is also starting to help me realize how imperative a network is for investment opportunities, whether you are an angel investor or an entrepreneur that needs funding and corporate leadership opportunities throughout our careers. I have interviewed some subject matter experts that I feel have helped expand my network for future opportunities.

    As I am sure you have heard before, it’s not always what you know, but who you know that makes a huge difference in business and life.

    Best,
    Stokes Warren

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  7. Katherine,
    Human capital is vital to entrepreneurs and investors alike. It can be extremely difficult to open up and let others have a hand in something you have created from the ground up, but for many entrepreneurs that is the only way to keep their dream alive and further let it grow. As you mentioned, entrepreneurs should take the time to research potential investors and those who they would like to invest in them and their idea. Much like when looking for a job, it is important to know early on if your ideals and goals match up with this person/group since they will have financial stock in your business and therefore a say in what goes on.
    Great post!
    Brittany

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  8. Katherine,

    I never watched Shark Tank, but your comments piqued my interest, and I watched an episode. It was interesting, and I think the book helped me better understand some of the language the sharks used and their calculations. They didn’t seem too interested in building a relationship with the entrepreneur – I suppose that is done for television. Your comments about the importance of building a good working relationship between entrepreneur and investor are more “real world.”

    Adam

    Like

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