- 12 dos and don’ts for angel investing
- Angel investing by Paul Graham
- Breaking down a typical VC due diligence process
- Strategy and decision process for angel investing
- Wrong people – we have seen a number of startups that simply have the wrong people on staff. That isn’t to say that every team must be 100% perfect, but having the wrong people on the team can be difficult if the team is not willing to change. It may be they need strong sales and have no person on the team who can make the first critical sales (see my post on Rudy Gadre’s view on founder charisma). Or it may be that they have founders taking equity or salaries and are providing no value to the business. Expect that we will be analyzing who should and shouldn’t be on the team early and have a frank conversation after a pitch or over coffee about what needs to happen to get the right team on board.
- Wrong formation/agreements – It’s a rare start up that can get invested as an LLC, and if you don’t own the IP, you’re in a world of hurt. Examples:– the team has formed their company as an LLC and need to take venture capital in the future to be successful, they need to be a C-corp. Check out Joe Wallin and Scott Usher’s post on incorporating an LLC.
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