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Ask HN: Money is not the constraint. Should I talk to angels?
So I have startup idea and I have implemented a fare bit. We hope to launch a private beta in the next couple of weeks. Right now I bootstrap this besides my day job.
My question is: Should I keep slowly boostraping or should I start talking to angels? What other benefits besides money does a good angel have? Should I care about his connections or will the product sell itself if its good enough?
- michael_dorfman 16y agoI wouldn't talk to angels at this point, if I were you. If you're able to bootstrap your way through your private beta, do it. If possible, I'd hold off talking to angels until you've found a repeatable, scalable customer acquisition processes. If you manage to do so, you'll be in a much stronger position with the angels, and you'll also have a clear idea on how to effectively use the money raised.
- steilpass 16y agoI agree. But I wonder if an angel could help me find a repeatable, scalable customer acquisition process?
- petervandijck 16y agoDisagree. Talk to them. It doesn't mean you need to raise money right now.
- michael_dorfman 16y agoThen why talk to them? Remember opportunity costs-- the time the OP spends (wastes) talking to angels when he doesn't need money is time taken away from more productive pursuits (building the product, acquiring customers, etc.)
- sendos 16y agoThis may be a stupid question, but if a startup has found a "repeatable, scalable customer acquisition process" why would they need to talk to angels? Presumably your repeatable, scalable customer acquisition process will be bringing in lots of customers, who in turn will bring in income. So, you won't much need angels for money. Also, the fact that you have a repeatable, scalable customer acquisition process means that you've solved one of the most, if not the most important problems a startup faces. So, you won't much need angels for the connections and advice on how to increase your traction. Of course the above is over-simplifying a bit. Even with income and more and more customers signing up, you may still need money to expand at the rate you want. Still, once a startup finds a repeatable, scalable customer acquisition process, it's hard to see much need for angel investors.
- michael_dorfman 16y agoStill, once a startup finds a repeatable, scalable customer acquisition process, it's hard to see much need for angel investors. I disagree. What's more, I think you do, too. You said as much a sentence earlier: Even with income and more and more customers signing up, you may still need money to expand at the rate you want. If you've got a repeatable, scalable customer acquisition strategy, more money in means more customers (and profit) out. In other words, you've built the money machine-- now you use angel money to get it running full speed.
- harscoat 16y agoThink of some Angels as potential partners. Select those which advice, help, network can help you and start the conversation. Seeing that you do not need their money will make them more interested in your business in the future.
- petervandijck 16y agoStart talking to them just to get to know them/for them to get to know you. Investors love talking to companies that don't need money.
- vessenes 16y agoYou should talk to angels, in my opinion: fundraising takes time, and building greed / need in the investors takes time. Since you don't need their money, now is the perfect time to go see them. You'll find a wide range of personal suitability (connections, meeting of the minds, smarts about your space) in the meetings, so definitely worth doing. Now, if your product doesn't need money because it's paying for itself, then you DEFINITELY should go talk to investors a) because you'll come away feeling awesome about yourself, and b) because you'll be able to command some truly awesome pricing.
- pajarito 16y agoAngel will not make your product fly if it is a heavy one. If you think the opinion of Angel can make it a better product contact them else focus in your goal until your product is ready for market.
- smallegan 16y agoI like to think of angels like Nitro in a car...helps you with short term rapid acceleration (making connections, early funding, a sounding board to bounce ideas off of, etc..) EDIT: So my answer is yes, you should start talking to them.
- steilpass 16y agoSo no clear suggestion here: Talk vs. work. Connections vs. overhead.
- epi0Bauqu 16y agoEmail ha@hackerangels.com. We mainly give advice--if you need any, that is.
- dh 16y agoThere is no harm in talking to the right people at anytime. It does not mean you have to raise money right now or that you even find the right partner but you will learn a lot about the business and yourself along the way. If the question is should you take money, you are in a much stronger position when you have traction (however you want to measure that).