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How do you choose your angel investors?
For those who have raised funds from angel investors, what are the criteria you consider? What's important for you that your early investors have?
Do you prefer investors who add value or investors who give the money and doesn't advise on how you run the business?
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If you're at 0 and taking your first angel checks, the amount of money should always be second priority to the network/access/experience/strategic connections that your investor can provide. You don't want to raise too much money at firsts anyway because you'll give away too much of your company, so best to raise a little money from well-connected people at a low valuation than lose it all for one "big check" that takes too much power away from you.
Finding an investor is a lot like finding a job - it comes down to your network, timing, and luck. If you're truly ready to scale up, you need to start with the people closest to you first - friends, family, and business acquaintances. They likely know other investors, who can also be contacted for advice.
@qudsia_ali But still, what criteria will you be looking at? What will make or break your decision to take the money?
I would certainly go with the second option - those who give money and don't advise on how you run the business. Unfortunately, the majority takes part from the first category - who's being too nosy and fulfills your brain with infinite advice and requirements.
I would certainly go with the second option - those who give money and don't advise on how you run the business. Unfortunately, the majority takes part from the first category - who's being too nosy and fulfills your brain with infinite advice and requirements. Moreover, while surfing the internet, I ran into an article about why liquid net worth matters https://thecentsofmoney.com/why-... that might come in handy for business. And finally, if someone knows where I could find the second category of investors, I would highly appreciate any hint. Cheers!
Jorcus