This article offers advice on managing angel investors for startup founders. It emphasizes the importance of being selective when choosing angel investors, suggesting that founders should carefully consider the value each investor brings to the table and avoid creating a large group of investors that could cause management challenges. The article recommends limiting the number of angels and aiming for fewer, bigger checks to minimize dilution and management demands. It also suggests setting clear expectations and boundaries for communication with investors, utilizing monthly updates to keep them informed. Additionally, the article warns against giving angels too much equity or pro-rata rights, which could create complications for future funding rounds. Overall, the key takeaway is to carefully manage the investor pool and control the relationships to avoid potential issues and distractions in the startup's journey.
How to Manage your Angel Investors By Lewis Hower
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