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:
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/