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> One final note: investors who want business plans are probably not your target market, if you’re founding a high growth technology startup. We had lots of gr
by true_religion 15y ago
> One final note: investors who want business plans are probably not your target market, if you’re founding a high growth technology startup. We had lots of great followup conversations with the angels who wanted them, but ultimately none of them turned in to investors.
They never gave a busienss plan to these angels, so the angels never invested despite "good follow ups". That seems reasonable.
I'm just pointing this out lest people have this take away message the business plans are obsolete (they're not: if you're not a radical startup, please have a business plan).
- danshapiro 15y agoWe had plenty of conversations with many of these folks; I'm pretty sure that they had their questions answered and understood the business. I don't think there was a lingering resentment at a probably-forgotten request that was never mentioned again. But in the course of those conversations, their reason for passing also became clear - generalizing across the group, they were used to more traditional investments like restaurants and real estate. Not coincidentally, investments for which a business plan is both a sensible and standard document. They passed because our profile (tech company swinging for the fences) wasn't the right fit for them.