For Startups, How Many Angels Is Too Many?

http://www.nytimes.com/2015/07/07/technology/for-start-ups-how-many-angels-is-too-many.html

by r0h1n • 11 years ago

11 4 11 years ago

One.

I know I am being snarky, but in my opinion all startups should aim for being self-funded with no outside investors. This is not because I think this is the way to get rich, but because it gives you the greatest freedom. Taking on investors should be your last resort, not first step. Making something great and living a good life is more important than money.

DanielBMarkham• 11 years ago

Agreed. Get three awesome advisers instead of even one Angel.

Same benefit, less hassle.

curiousjorge• 11 years ago

I agree.

Also I think a lot of people, especially engineers, are clueless as to why these middle aged men are throwing money at them. They'd love to see you fall if it means greater profit. I've seen founders who took a bite that was too big to chew for them.

These guys wouldn't be able to do the same amazing things you do, and they want a piece of the action, and control. They are not your friends, they are not your enemies either, just faceless agents motivated by returns where as the operator of your company, you almost certainly will have conflicting interests, just be sure you are the one running the show but the tiny letters and the army of lawyers at their disposal, it's an uphill battle.

johnrydell• 11 years ago

This is going to sound stupid but you should pick up as many as are useful to your specific needs. If you are super desperate for money, you might end up with a ton of angels. (Just remember the tradeoff that you will be managing a ton of personalities forever.)

On the flipside, if you can find a small handful of angels that not only bring money but who can help you with sales, marketing, or operational, then go for it.

Never forget the time commitment that you have to put in to every single person who gives you a dollar.

For Startups, How Many Angels Is Too Many?

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