Well said David.
To attest to your point. I attended an Angel Investment promotional tour here in Auckand, NZ. I’m on the other side of the fence (to Angel/VC investment). I’m a business owner/web entreprenuer who’s been operating a SaaS since 1997 and serving customers large and small, without any outside investment. We’re self funding and by necessity realatively conservative — but we’re stable and consistent — with many customers with us for 10+ years.
However like many tech businesses we’re feeling a little inadequate when reading about the awesome amazing unicorns. Can we grow faster, get bigger. Do we chase the money?
So I was interested in the pitch to see what we’re missing out on.
There were some good points made by very successful angel investors. However it all felt and sounded like a bit of a club to me. And while they all talked up the idea, that it was not just about the money — but the mentoring and business experience they brought to the table.
That all sounded disingenuous when seconds later the talk turns to the trend (by Angels and Angel groups) to move away from single angel investors to 100, 150, 200 angel investors pooling resources to invest in a start up. To reduce the risk and ensure for rounds 2,3,4,5 there is a pool of investors to tap.
Ok sure I get it — but where is the mentoring and expertise? No way that 100 plus investors are gonna fit into my office to mentor me.
It just reinforces the club mentality. Rich boys having a bit of a gamble, a bit of fun.
Hell they expect that most will fail. So how come these wise old heads with expertise and connections to burn, can’t pick a good business or help it make a decent profit. Surely they can sort the chaf from the wheat?
But there doesn’t appear to be an apetite for that. Sounds too much like real work perhaps.
I’m with you David.