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I mean more the fact that other startups will be raising at the same time, and you will be competing for attention and money. Consider: Does an angel want take
by joshu 16y ago
I mean more the fact that other startups will be raising at the same time, and you will be competing for attention and money.
Consider: Does an angel want take some dollars and a) invest in a new hot startup that he just got introduced to or b) double down in a startup that hasn't seen traction yet and is going back for another year's worth of runway?
Using story-based reasoning, the investor is able to convince himself that A is a much better opportunity.
- pedalpete 16y agoThanks for clarifying your thoughts on that. Though I would have thought most start-ups are not returning to Angels for a follow-on round, but rather progressing to VCs for a seed round. I see your logic as the business is probably relying on the initial angel to lead a Series A.
- joshu 16y agoIf you have raised 500k, and have been working for a year and have not shown any traction, you are going to get punished if you try for a series A. You'll do better going back to your angels -- but the current crop of angels may react differently than you expect/hope. That's my overall point.