The term "the bite size is too small" is confusing to process as a founder -- I didn't get it myself
But I no longer do smaller investments:
1. It means taking on an obligation to help for 10+ years
2. Most investors don't actually help, puts more burden on those that do
But I no longer do smaller investments:
1. It means taking on an obligation to help for 10+ years
2. Most investors don't actually help, puts more burden on those that do
3. "You can just help us build our sales and marketing team" is still a pretty big obligation
4. Founders get frustrated later if you don't help enough
5. Creates confusing signaling for later rounds. Am I on the hook for the next round, even partially?
4. Founders get frustrated later if you don't help enough
5. Creates confusing signaling for later rounds. Am I on the hook for the next round, even partially?
6. What happens when the company does OK but not great? Other investors check out. You can't.
7. No real way down the road to say "my time to help was the earlier days". Only way is if company is rocket ship.
8. In the end, better to just be a fan and a friend.
7. No real way down the road to say "my time to help was the earlier days". Only way is if company is rocket ship.
8. In the end, better to just be a fan and a friend.
