What Business Are Angel Investors In? This is the question that I sometimes ask startup founders. Usually I get blank stares or quizzical looks. Some founders attempt to sputter something about recognizing value or getting returns on my investment. Not quite. It’s not a theoretical question. What is the business of angel investors? It’s a simple question, right? But most entrepreneurs struggle to answer. Angel investors are in the exit business. Angel investors, at least th
If you want better performance, ask better questions. Evidence shows that reframing the questions you ask inspires the kind of productive and insightful ideas that animate the most resilient and successful startups. And by questions, I don’t mean questions like: • What’s your business model?
• What do your customers expect?
• Who is your competition?
• What is the cost of acquiring new customers? These are important “tactical” questions and angel investors expect you to ha
Angel investors have learned to run the other way when they see certain warning signs in the entrepreneurs that approach us for funding. This two-part article describes the most common hazard signs that make angel investors say “Thank you. Next!” The newbie angel bubble is beginning to burst. And as a result, the remaining “smarter” angels are upping their expectations of startups. And that’s a good development. Many of these newly-minted amateur angels were hoping to score t
My new book, What Every Angel Investor Wants You to Know, will be published on April 19, 2013. Intended for entrepreneurs and founders of startups, the subtitle of the book is: An Insider Reveals How to Get Smart Funding for Your Billion Dollar Idea. I wrote it with my good friend Brian S. Cohen, the Chairman of the New York Angels. Book cover design is an endlessly fascinating topic in which publishers and authors invest enormous resources and angst. Many books go through ma