3 ms·
From what I've seen, most Angels will be fine in and "advisory" role, and don't expect to be given the right to make decisions for the company. But with money
by carpal 19y ago
From what I've seen, most Angels will be fine in and "advisory" role, and don't expect to be given the right to make decisions for the company.
But with money raised by serious venture capital firms, they definitely expect more control. It isn't so much direct as it is indirect. The VC firms will have control over a significant portion (if not a majority) on the Board of Directors. As such, they'll likely have power to hire and fire top-level managers. Including yourself. Therefore, while you're not obligated to obey them, you'll be more inclined to follow their advice since your job is, essentially, in their hands.
That, in its essence, is why you should 1) avoid VC cash unless completely necessary, and 2) pick your VC firm carefully (don't always go with the highest valuation or biggest name).