Supporting…

Welcome Blog readers! I will be continuing to use Amis’s and Stevenson’s (2001) information regarding angel investing in their book, Winning angels: The seven fundamentals of early-stage investing. I have shared information in previous Blog posts regarding Sourcing, Evaluating, Valuing, Structuring, and Negotiating. In this Blog post I will be sharing valuable information from Amis and Stevenson (2001) about Supporting. So let’s get right to it!

Who will support your new business? Perhaps and Angel Investor?

O’Flynn (2018) says, “Believe it or not, there are angels out there. For real. Not just the cosmic beings we often read in books and holy manuscripts, but real people who are ready to lend a hand, or a few thousand dollars, if you’re talking about business” (para. 1).

Angel Investors are people that are willing to invest and support entrepreneurs they believe in (O’Flynn, 2018).

Five Roles on Angel Investors:

The five roles of angel investors include being a silent investor (finances only), being a controlling investor (by taking control), being a coach (provides supports), being a team member (working within the new business either full or part time), and being on the reserve force (willing to help when asked to do so) (Amis & Stevenson, 2001).

What Types of Supports can Angel Investors Provide?

Amis and Stevenson (2001) note several types of supports that angel investors may give to new businesses including but not limited to:

Advice regarding strategy

Advice regarding product

Assistance with networking

Coaching

Mentoring

Monitoring

Evaluating

Value Events…What are they and what do they do?

Angel investors can really contribute to small business growth by helping with value events. Amis and Stevenson (2001) say, “A value event is essentially anything that brings a heightened level of excitement” (p. 254).

Value Events:

Help businesses to succeed

Increase success

Types of Value Events according to Amis and Stevenson (2001):

Marketing

Financial

Organizational

Operational

Production

Strategic

Hall (2015) notes that there is much value to in person marketing events noting that much effort is placed in online marketing but one should not forget that in person events are still important contact points noting that “…face to face interactions…” strengthen interactions. In other words, entrepreneurs should not forget the value and purpose of “in person,” “face to face” interactions with customers and potential customers. In addition, Hall (2015) notes that the entrepreneur should be present at planned events so that trust and respect can be established with the attendees. Be prepared to devote your time and effort to any events planned so that both your angel investor and your attendees/customers/potential customers realize your commitment to your company and to them. The entrepreneur remains at the forefront of making sure that the new venture is a success.

The full article can be found at the following link:

https://www.forbes.com/sites/johnhall/2015/04/12/the-value-of-events-in-a-marketing-world/#3302f0993d4c

While angel investors may be very helpful in supporting your new venture by organizing Value Events to promote your product, YOU are still at the center of your success so plan to show up and make an impact!

References

Amis, D., & Stevenson, H. H. (2001). Winning angels: The seven fundamentals of early-stage investing. London: Financial Times Prentice Hall.

Hall, J. (2015, April 12). The Value of Events In A Marketing World. Retrieved May 23, 2019, from https://www.forbes.com/sites/johnhall/2015/04/12/the-value-of-events-in-a-marketing-world/#3302f0993d4c

O’Flynn, D. (2018, November 16). Angel investing: The new way of supporting small businesses and startups. Retrieved May 23, 2019, from https://born2invest.com/articles/angel-investing-new-way-supporting-businesses-startups/

5 thoughts on “Supporting…”

  1. Hi Kay,

    I really like the way you structured this blog post. I think it works and it makes a lot of sense. You kept it simple and didn’t bombard the reader with too much information. Great overview.
    I also like your ending statement that you are still the center of your success. I 100% agree with that statement. You cannot let someone else dictate your success because then it isn’t really your anymore. I also think that statement goes hand-in-hand with “you get out what you put into it.” If you are not working hard on your success and working to make an impact, then you will never see the outcomes you want.

    Keep up the great work,
    Dani

  2. Kay,

    I enjoyed reading through your post this week. I found the aspect of angel investors giving “coaching” to their perspective entrepreneurs a very valuable attribute throughout the early investment stage. But, before going any further angels need to have faith in the project they are investing in. According to forbes.com, an angel investor says, “For me to consider companies as a sound investment proposition I look at a number of factors; international scalability, the competencies of the team, and those with a clear growth path. Companies with a clear concept, proof of viability, and metrics to evaluate success will attract my attention.” This really shows that angels want a clear path set before even considering funding a new startup. I will talk to you soon!

    – Paul

    Source:

    Coleman, Alison. “How To Get An Angel Investor To Say ‘I’m In’.” Forbes, Forbes Magazine, 7 Feb. 2016, http://www.forbes.com/sites/alisoncoleman/2016/02/07/how-to-get-an-angel-investor-to-say-im-in/#556463684489.

  3. Kay,
    Great way to condense the information and tell the story. I think the roles of investors and entrepreneurs are quite interesting, especially when considering a person can be both. I like the idea of Silent Investors and Reserve Force when I look at the opportunity as the entrepreneur. However, as an investor, I feel I would lean toward team member, especially if the company was struggling. There is no doubt in my mind that having a strong support network of people interested in the success of your business can be a huge benefit. As an investor, I think I would have to decide my role well before investing to know if I am okay being at a distance or feel the need for involvement. Thanks for the read.

  4. I agree that it is important to be “present” at in-person events. Not just physically, but engaging as well. Being present allows people to relate better. Its something about a relatable individual that makes people believe in them. As you expressed, in order to gain the trust and support of investors, teammates, and customers, its important to engage with them whenever possible.

  5. Kay,

    After reading the descriptions of the 5 roles of angel investors, I am more partial to the coach that provides support. I have only had one business, and I feel like I still have a lot to learn. Having someone to coach me through the process sounds very appealing. Great post!

    Jennifer

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