I am looking for an angel investor or crowd funding company who would do a half hour Skype interview with me. I run courses for new natural skincare business entrepreneurs and they have some basic questions around getting investor ready.

My opinion will differ a lot from the others, but I am a angel investor myself and I also have angel investors investing into some of my businesses.

Rule One: Never approach an investor, wait for them to approach you. Trust me, your negotiation power will be multiplied enormously and you will walk away with a much bigger percentage. For example, if someone is approaching me to invest in their business I already know that they really "need" that cash, so that puts me into a very good position where I can easily walk away with a majority stake in the company, especially if it's a small startup. It's a deal with the devil my friend, some investors can be a real PIA. I saw a lot of startups going to hell and founders lose their job when investors raised capital etc etc - it's a dangerous game.

Rule Two: Do you really need an investor? Owning your business 100% is always better than having to reply to difficult questions on a weekly basis from people who are watching your back. It's a lot of pressure, no matter if someone invested 10k or 100k in your business. Sometimes getting a credit from a bank is the much better way to go - at least they don't tell you what to go.

Have a look at Jack Ma - he founded his business (Alibaba) with roughly 3k from family members and look where he is now. Avoid investors at any cost - bring only investors in who can actually help you with your business - that's different.


Answered 5 years ago

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