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"And as an entrepreneur, do you really want to take money from some one who might not have enough knowledge about you and your business?" Um, yes. Taking mone

"And as an entrepreneur, do you really want to take money from some one who might not have enough knowledge about you and your business?" Um, yes. Taking money with these terms is a no-brainer. It doesn't preclude you from taking on more active money or taking on advisors. Anyone who puts together an angel syndicate almost always has investors who say, "I'm really busy, so I can't help out much, but here's my money". Most angels think about your business for a few hours a month, at best.

sushrutbidwai 16y ago
Most things I learnt about my own business had been through quality meetings with quality investors who can ask really good questions. At least from first set of investors, thats what I look for the most rather than money. Having said so I do see your point as well and we can just agree to disagree.
- wheels 16y ago
  Just because you want smart money doesn't mean you should refuse free money. If an angel were looking at a team that didn't take this money, they'd have to wonder if they were competent enough to run a business.
  - intended 16y ago
    I'd say free money is more corrosive - yes in the hands of some (some is relative) it will be useful. In the hands of others will let them walk down a bad path longer. For analogy, I'd use the resource curse. Countries which should theoretically be paradises are not, because their natural resources prop up bad economics and bad governance. As always, its an opinion. I guess a data driven answer would depend on the contra event of what these companies would have done if they weren't offered the money.
  - intended 16y ago
    I'd say free money is more corrosive - yes in the hands of some (some is relative) it will be useful. In the hands of others will let them walk down a bad path longer. For analogy, I'd use the resource curse. Countries which should theoretically be paradises are not, because their natural resources prop up bad economics and bad governance. As always, its an opinion. I guess a data driven answer would depend on the contra event of what these companies would have done if they weren't offered the money.

sushrutbidwai 16y ago

Most things I learnt about my own business had been through quality meetings with quality investors who can ask really good questions. At least from first set of investors, thats what I look for the most rather than money. Having said so I do see your point as well and we can just agree to disagree.

wheels 16y ago
Just because you want smart money doesn't mean you should refuse free money. If an angel were looking at a team that didn't take this money, they'd have to wonder if they were competent enough to run a business.
- intended 16y ago
  I'd say free money is more corrosive - yes in the hands of some (some is relative) it will be useful. In the hands of others will let them walk down a bad path longer. For analogy, I'd use the resource curse. Countries which should theoretically be paradises are not, because their natural resources prop up bad economics and bad governance. As always, its an opinion. I guess a data driven answer would depend on the contra event of what these companies would have done if they weren't offered the money.
- intended 16y ago
  I'd say free money is more corrosive - yes in the hands of some (some is relative) it will be useful. In the hands of others will let them walk down a bad path longer. For analogy, I'd use the resource curse. Countries which should theoretically be paradises are not, because their natural resources prop up bad economics and bad governance. As always, its an opinion. I guess a data driven answer would depend on the contra event of what these companies would have done if they weren't offered the money.