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Aug10
Chad and Brad say this is a Good Article
Chad Blodgett emailed this story to me and Brad Feld blogged about it.  I'm guessing it's worth reading.

David Cohen writes a thoughtful article about how angel investors make decisions to invest.  The underlying theme is that many angels rely a great deal on impressions and connections to evaluate investment opportunities -- as opposed to venture capitalists who can't afford to spend other people's money based on gut feelings.

Quick warning: Even though angels aren't as rigorous with their due dillegence as other investors, don't fool yourself into thinking angel investors won't rip your business to pieces.  However if you follow the principles that David points out you'll be in a great position to impress angels when you meet.

Thanks for the tips fellas!

3 Comments/Trackbacks




Jordan and company: ever read "Blink" by Malcolm Gladwell? Gut instincts probably aren't just happening in the gut. It's often rapid cognition and it happens to trained experts...the thing is that most of us have some training in a couple, if not a lot, of things.
VCs may put too much thought into something they already know, potentially killing a deal and/or opportunity.
Think about this (or don't!) the next time you pull up for a jumper.

Jeff, I generally categorize VCs into “people investors” and “market investors” - what you appear to be saying is that most angels are “people investors” in that what they care about is the quality of the people. I would think that’s generally true, although I believe there are angels who are very focused on the market/technology area where they first made their money, and those will tend to be more focused on the details of the technology, market introduction, etc. Those would be the most *useful* investors aside from their cash, because they’ll be valuable advisers and can provide introductions.

Jordan and company: ever deliver "Blink" by Malcolm Gladwell? Gut instincts most likely aren't evenhanded doing in the gut. It's commonly nimble-footed cognition and it happens to enlightened experts...the thing is that most of us have some politesse in a cement, if not a lot, of things.
VCs may put too largely gaiety into article they alrecitey know, potentially killing a deal and/or opportunity.
Think about this (or don't!) the thereupon time you shut in up for a baseballer.

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