From Deseret News archives:
Angel investors desire success for entrepreneurs
First, there is the presentation to the angels, which is open to direct questioning and, sometimes, harsh criticism, which may be embarrassing and belittling. Then there is the nervousness about allowing outsiders to examine your whole business plan, including past mistakes, and having to reveal your current financial statements. And then there is the perceived threat of possibly losing control of your business by having the funding group take over the company because of greed and desire to cut you out.
No wonder these angels sometimes look like devils to entrepreneurs.
As an angel investor and an entrepreneur, I understand the anxiety. But I've got to tell you that there is little basis in fact or real-life experience for these concerns, which are essentially based on urban legends and nothing more. Please allow me to explain.
The fact is, the time and feedback of the investing group would be well worth paying for, if it came to that. Where else can an entrepreneur sit in front of a group of successful and experienced investors to receive feedback on their business proposal? Even negative feedback can give the person wanting funding a dose of reality that will help him or her get on the right track to having a company that is worthy of funding.
What angels don't like is to have a poor presentation during which the presenter is obviously hyping the numbers, the market size or even the concept itself. That's when the criticism will escalate and it should.
Allowing investors to have full and open access to your business plan, financials and history is standard practice. Understand that the angels have no interest in competing with you, and they didn't get to where they are in life by leaking information. If you want outside money, you have to be willing to trust the investors as they do their due diligence. They will eventually discover all of the company's warts anyway, so why not be up-front and completely honest with the picture of the company? Take it from me: Angels are impressed with complete honesty.
Comments
- Grieving UK mother rips into Brown 10:26 p.m.
- Community annexation put on hold 10:26 p.m.
- North and South Korea clash at sea 10:25 p.m.
- Robbers see Army ID, return wallet 10:25 p.m.
- Base opens rift in U.S.-Japan ties 10:19 p.m.
- Did Blackwater try to bribe Iraqis? 10:18 p.m.
- World datelines 10:18 p.m.
- Cal RB Best resting at home 10:12 p.m.
- Long days for BYU interns 10:11 p.m.
- Navajo Code Talkers break silence 10:08 p.m.
- Utah group finds homes for orphans
- Pratt pleads not guilty to sex charges
- Y. tight ends talented tandem
- Jazz blow big lead, hang on
- Utes get extra motivation
- Senators want food tax restored
- Hair-pulling raises more questions
- BYU soccer incident still popular
- Lobo land like home for BYU lineman
- U. hopes to keep clicking
- House passes health care bill
261 - TCU showdown has big implications
188 - Lobo suspended
185 - Cougars crush hapless Cowboys
155 - Senators want food tax restored
148 - Utah Jazz fall apart against Kings
131 - TCU 4th in AP poll; U. 16th, Y. 22nd
119 - No 'backlash' for pioneers, gays analogy
105 - S.L. vote pending on gay protections
104 - RSL rallies to advance
103
Maybe someone out there can help me understand how raising the state...
How is non-discrimination a bad move? Can you explain that to me? Wouldn't...
Anything that promotes homosexuality in our community is wrong, including...
One question. If these bills are so good, why has congress optied out of it?...
I can understand that concern for a couple reasons. A landlord over multiple...
If the Republicans are voting for Healthcare bills to die, what is their...
Dixie is the best team in the state hands down. TV/MC dont stand a chance...
How much was paid by subsidies? What is the cost of the power? What is the...
I was in the Hill Cumorah Pageant cast this summer. Two days after Ben's...
Congratulations, ladies, on a great accomplishment! Only your second year...
How to reduce the budget; and not on creative ways to raise more taxes. ...


You can be the first to comment on this story.