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In my personal experience of fund raising (I raised from billionaires Tim Draper and Marc Benioff of Salesforce for http://gun.js.org/ http://gun.js.org/ ) is t
by marknadal 10y ago
In my personal experience of fund raising (I raised from billionaires Tim Draper and Marc Benioff of Salesforce for http://gun.js.org/ http://gun.js.org/ ) is that it is all about social proof, referral, and not missing out on a deal that another reputable name is already in on.
This surprised me, because I'm an extreme penny pincher, so it was odd to see people move large sums of money in a "where's the money at" mentality rather than (perhaps my poor-man's mentality?) "what is the best value I can get?" process.
Although Tim Draper was my lead, so he got the best value in the deal. ;) And I'm happy for it, because he's been remarkable to work with - very supporting, encouraging, and edifying.
- newy 10y agoThere's an element of "not missing out", but for many investors (especially angels, who do not invest professionally), there's also elements of: (a) wanting to co-invest with friends and (b) trusting the judgment of people they know well.