4 ms·

The biggest issue I've found with angels and especially super angels is that their fingers are in so many pies, that very often they're already fingering the sa

The biggest issue I've found with angels and especially super angels is that their fingers are in so many pies, that very often they're already fingering the same (or a very similar) type of pie that you're offering. You'd want to know exactly what they have a stake in before making an approach, yet often that information is hard to find (or purposely concealed.) Overlapping feature sets. Conflicts of interest. Picking the winners. Contrived rejections. Leaks. Angelgates. Portfolio loading. Brain picking. Buyer beware in my view.

gyardley 16y ago
In my experience, investors are pretty up-front about potential conflicts, and anything you'd possibly share with them isn't going to hurt your business. If you want to raise money, paranoia about angels isn't the way to go about it.
- adrianwaj 16y ago
  Why take (waste) your time talking to an investor if they've already invested in something the same or very similar? Open question: which investors have websites, as linked from their twitter accounts, that display all their investments? Does Y Combinator?
  - gyardley 16y ago
    Because often small investors aren't involved in the day-to-day of their portfolio, don't have information rights, and can invest without any real conflict? Hell, the firm who put $6MM into our Series B is also the lead investor in our biggest competitor. That's a legitimate conflict. Worrying about an angel bringing $50K to the table is a waste of time - if it's really an issue, they'll be the ones to raise it.
jasonmcalacanis 16y ago
I'v stopped people mid-pitch due to the fact that they are building something exactly like Blippy, Gowalla, Signpost, Chartbeat and Thumbtack (to name a few). They always appreciate it, and in fact I've some say "I know, but can i pitch you anyway just to get feedback?" In those case I say "sure, but please don't tell me anything that's not obvious or public, because although I would never share what you tell me with an existing investment, I wouldn't want to have that appearance out there."
- adrianwaj 16y ago
  Good for you. I'd love to see a private equity database that tracks venture investments by angels or super angels. Maybe something automated that monitors outgoing links on portfolio pages, or something like that.
joshu 16y ago
I usually ask for a short summary and then tell them about possible conflicts. A surprising number of entrepreneurs either think their idea is so special that a one-liner will give it away OR want to meet without giving a summer. Hmph.
- adrianwaj 16y ago
  OK, let me send you a summary once we launch shortly.

gyardley 16y ago

In my experience, investors are pretty up-front about potential conflicts, and anything you'd possibly share with them isn't going to hurt your business. If you want to raise money, paranoia about angels isn't the way to go about it.

adrianwaj 16y ago
Why take (waste) your time talking to an investor if they've already invested in something the same or very similar? Open question: which investors have websites, as linked from their twitter accounts, that display all their investments? Does Y Combinator?
- gyardley 16y ago
  Because often small investors aren't involved in the day-to-day of their portfolio, don't have information rights, and can invest without any real conflict? Hell, the firm who put $6MM into our Series B is also the lead investor in our biggest competitor. That's a legitimate conflict. Worrying about an angel bringing $50K to the table is a waste of time - if it's really an issue, they'll be the ones to raise it.

jasonmcalacanis 16y ago

I'v stopped people mid-pitch due to the fact that they are building something exactly like Blippy, Gowalla, Signpost, Chartbeat and Thumbtack (to name a few). They always appreciate it, and in fact I've some say "I know, but can i pitch you anyway just to get feedback?" In those case I say "sure, but please don't tell me anything that's not obvious or public, because although I would never share what you tell me with an existing investment, I wouldn't want to have that appearance out there."

adrianwaj 16y ago
Good for you. I'd love to see a private equity database that tracks venture investments by angels or super angels. Maybe something automated that monitors outgoing links on portfolio pages, or something like that.

joshu 16y ago

I usually ask for a short summary and then tell them about possible conflicts. A surprising number of entrepreneurs either think their idea is so special that a one-liner will give it away OR want to meet without giving a summer. Hmph.

adrianwaj 16y ago
OK, let me send you a summary once we launch shortly.