a seedling represents a seed stage angel

Most entrepreneurs make the wrong decision when seeking angel money for the first time. Instead of being selective about their investors, they focus on finding someone, anyone, with a bulging wallet.

That approach is shortsighted and will lead to trouble. Having the wrong investors creates a myriad of problems in a start-up.

Who Should Be Your First Seed Stage Angel?

1. People you like and respect and who like and respect you. Having compatible personalities and having an understanding of the difficulties of what your counterpart is doing are key to a successful entrepreneur-investor relationship.

2. Backers who know what it means to be an angel investor. You don’t want investors who will ask for their money back when the company gets into trouble or who ask you naïve questions. You need investors who realize that they are making high risk, illiquid, investments. And they are okay with it.

3. People who know how to help an entrepreneur. Be wary of angels who seek “coachable&rdquo


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Source: Small Business Trends