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The Evolution of Entry Level Workers
Assume Everyone Will Leave in Year One
Stop Listening to Investors
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What's My Startup Worth in an Acquisition?
When Our Ambition is Our Enemy
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The 5 Types of Startup Funding
What Is Startup Funding?
Do Founders Deserve Their Profit?
Michelle Glauser on Diversity and Inclusion
The Utter STUPIDITY of "Risking it All"
Committees Are Where Progress Goes to Die
More Money (Really Means) More Problems
Why Most Founders Don't Get Rich
Investors will be Obsolete
Why is a Founder so Hard to Replace?
We Can't Grow by Saying "No"
Do People Really Want Me to Succeed?
Is the Problem the Player or the Coach?
Will Investors Bail Me Out?
The Value of Actually Getting Paid
Why do Founders Suck at Asking for Help?
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You Only Think You Work Hard
SMALL is the New Big — Embracing Efficiency in the Age of AI
The 9 Best Growth Agencies for Startups
This is BOOTSTRAPPED — 3 Strategies to Build Your Startup Without Funding
Never Share Your Net Worth
A Steady Hand in the Middle of the Storm
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How About a Startup that Just Makes Money?
How to Recruit a Rockstar Advisor
Why Having Zero Experience is a Huge Asset
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The Hidden Treasure of Failed Startups
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The Ridiculous Spectrum of Investor Feedback
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Series A, B, C, D, and E Funding: How It Works
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Why Aren't Investors Responding to Me?
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Unemployment Cases — Why I LOOOOOVE To Win Them So Much.
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Heat-Seeking Missile: WePay’s Journey to Product-Market Fit — Interview with Rich Aberman, Co-Founder of Wepay
The R&D technique for startups: Rip off & Duplicate
Why Some Startups Win.
Chapter #1: First Steps To Validate Your Business Idea
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Drop Your Free Tier
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How to Shut Down Gracefully
How Does My Startup Get Acquired?
Can Entrepreneurship Be Taught?
How to Pick the Wrong Co-Founder
Staying Small While Going Big
Investors are NOT on Our Side of the Table
Who am I Really Competing Against?
Why Can't Founders Replace Themselves?
Actually, We Have Plenty of Time
Quitting vs Letting Go
How Startups Actually Get Bought
What if I'm Building the Wrong Product?
Are Founders Driven by Fear or Greed?
Why I'm Either Working or Feeling Guilty
Startup Financial Assumptions
Why Every Kid Should be a Startup Founder
We Only Have to be Right Once
If a Startup Sinks, Founders Go Down With it
Founder Success: We Need a Strict Definition of Personal Success
Is Quiet Quitting a Problem at Startup Companies?
Founder Exits are Hard Work and Good Fortune, Not "Good Luck"
Finalizing Startup Projections
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Our Startup Culture of Entitlement
The Bullshit Case for Raising Capital
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All Founders Make Bad Decisions — and That's OK
Startup Board Negotiations: How do I tell the board I need a new deal?
Founder Sacrifice — At What Point Have I Gone Too Far?
Youth Entrepreneurship: Can Middle Schoolers be Founders?
Living the Founder Legend Isn't so Fun
Why Do VC Funded Startups Love "Fake Growth?"
How Should I Share My Wealth with Family?
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Why Do We Still Have Full-Time Employees?
The Case Against Full Transparency
Should I Feel Guilty for Failing?
Always Take Money off the Table

Profile of an Angel Investor

The Startups Team

Profile of an Angel Investor

Your typical angel investor is going to have been a successful businessperson or entrepreneur that is looking to put some of their earnings to work in an investment they really feel passionate about.

Since angel investors were often successful in their own careers, having access to their experience and rolodex is sometimes even more valuable than the capital they invest.

Make no mistake, the business of an angel investor is to make money. But there is a very personal attraction to each deal that makes working with an angel investor different than going to a nameless, faceless bank.

High Net Worth Individuals

The typical angel investor is someone who’s net worth is likely in excess of $1 million or who earns over $200,000 per year. Incidentally those look a lot like the credentials of an accredited investor. Realize though, that the angel investor is playing with their own money, not invested capital, so even though they may be a high net worth individual, they are still looking at money coming out of their personal bank account.

Makes a Few Investments

Most angels invest part-time and therefore only have the resources to review a small number of deals.

Angel investors are limited by two factors – their time and their capital. Unlike professional investors (i.e. a venture capital firm), angel investors typically work with their own deal flow, which requires them to spend quite a bit of time sifting through new ideas to find something they want to dig into.

Aside from their time, angel investors have a relatively limited amount of funds to play with, so they have to be a lot more selective about who gets a check. A typical active angel investor may make just a couple investments per year.

Value Beyond Just Capital

Since angel investors were often successful in their own careers, having access to their experience and rolodex is sometimes even more valuable than the capital they invest.

The check is nice, but a strategic angel investor that can give you access to a customer that you would have never had a relationship with is even better (we all love revenue, after all). You may find that picking the right angel investors isn’t just about capital, but about access to resources you need to drive the business forward.

Gateway to Larger Capital Sources

Angels are one of the most trusted sources of new deal flow for larger capital sources such as lenders, private equity firms and venture capital firms – not to mention other angels. They may also help you syndicate your deal with other members of their angel investor group that they are a part of.

A venture capitalist, for example, relies on these angel investors to figure out whether the business has traction and momentum enough to warrant a larger investment. As such, you’re going to rely on these early angel investors to be your most valuable asset in follow-on funding as your grow.

Investing Gets Personal

Just about every other form of capital, like a bank loan or a venture capital investment, tends to focus on the deal and the capital. A deal with an angel investor, however, tends to be a lot more personal. There is often very little to go on in the idea stage, and the angel investor knows that. They are more likely to invest in you and your idea than the mechanics of the business itself. Later on when you start talking to larger professional capital sources, it’ll be a lot harder to get by just based on relationships and ideas.

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