
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!







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.
Posted by: Dave | August 22, 2006 8:25 PM | Permalink to Comment