If your startup desperately needs an investor, you may not care if the investor is a so-called “angel” investor, or a venture capitalist (VC). The money is the same color in either case. But I have found that making the right choice at the right time can have a major impact on your long-term success, and the decision process is complex.



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Written by ShawnHessinger
5070 days ago

Deciding on the amount of money your actually need for your startup and the amount of return to be expected are both really important, Martin. Since there are some investors you will not even want to approach depending on the amounts involved. To do this, I think you need to be very realistic about expectations. If creating your product or service is cheap but reaching a large enough market isn't this is a completely different issue than having a product or service that is expensive to produce or requires a lot of development. I think the big problems usually are overestimating the market (or maybe just overestimating the immediate market) and not being intelligent enough about how to do things inexpensively and avoid waste. Not every problem is solved by volume.



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Share your small business tips with the community!
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