[HN Gopher] You can't have too many angel investors ___________________________________________________________________ You can't have too many angel investors Author : wdaher Score : 42 points Date : 2021-05-26 21:26 UTC (1 hours ago) (HTM) web link (waseem.substack.com) (TXT) w3m dump (waseem.substack.com) | antonzabirko wrote: | Nice try angel investors. On a more serious note, investors need | more companies to invest in. What does this post spread but | propaganda? Why exactly should we take more money early when the | real question is efficacy and speed of growth? Throwing more | money at this issue likely won't fix it, so a headline like this | is misleading. Less angel investors is better, and it's better to | be picky about them and get better terms if possible. The | opposite of this article. | TruthWillHurt wrote: | Well you now have 44 people looking over your shoulder, giving | you advice based on half-baked opinions formed on partial | information, and freaking out whenever you do something that | slightly surprizes them. congrats. | jacquesm wrote: | That's complete nonsense. A good angel-company relationship is | not driven by the angels but by the company management. It's on | their terms that advice is sought, evaluated, and quite | possibly rejected. If you let your angel investors drive your | company you are doing it dreadfully wrong. | | As a participant in well over 20 investments now I've yet to | see this go wrong even once. | ylere wrote: | Does anyone have experience with Angelists RUV? Is it worth the | costs? Does it make it in any way harder for an angel to invest? | jacquesm wrote: | The 'malicious' bits are typically covered by good shareholder | agreements, the ones with teeth in them. Angel investors that | intend to 'do tricks' tend to bail out when they come across | terms like that so a good shareholder agreement not only serves | you well for the shareholders themselves but can also serve as a | filter for prospective shareholders. Of course the more angel | investors you have the bigger the chances that you draw someone | who does not have your interests at heart. So you will still need | to vet them, the easiest way is to contact founders of other | companies they've invested in. With a lot of first time angels | flooding the scene this is of course not always possible. | | A good way to deal with having a lot of angel investors is to | create a separate 'angels' vehicle where angels participate, this | vehicle then participates in your company. | | That way you have all of the benefits and none of the drawbacks | of having a lot of smaller early stage investors. You can roll | your 'friends and family' round if you have one in there too. | | Edit: Ah, the author mentions the 'roll-up' vehicle at the end of | the article. Good. | Animats wrote: | Well, if you have too many, you've done an unregistered | securities offering and the SEC will come after you. At 35 | investors, the rules change. Read up on Regulation D. | Jorge1o1 wrote: | Well, presumably angel investors are accredited. If they don't | have at least a million in net worth, what does that say about | their track record? And if that's what it says about their | track record... what does that say about your company? ;^) | jacquesm wrote: | This all needs the context that it is US specific. Other | countries usually do not have this 'accredited investor' | limitation, nor do they have low limits on how many named | investors can participate in any one undertaking. | paxys wrote: | The rules change at 35 _non-accredited_ investors. This has | zero bearing on angel investing. | huac wrote: | Usually angels invest in an SPV right? So technically the SPV | holds your shares, they hold shares of the SPV, and you only | have one investor? | Aperocky wrote: | Dread it, run from it, encapsulation always arrive. | tobyjsullivan wrote: | Forgive my ignorance. "encapsulation" is a new term for me | in this context. What does it mean? | Aperocky wrote: | Personally, I feel like many software principals can be | applied to real life, and it has a tendency to make | things simpler. | | Sometimes it's a joke, but other times it is quite | fitting. | icedchai wrote: | Not in the startups I'm familiar with. You have individuals | investing anywhere from 10K to 100K+. ___________________________________________________________________ (page generated 2021-05-26 23:00 UTC)