One of my advisors requested that I share a more complete thought on investment and investors.
1) An investment is not a sacrifice. An investment has an anticipation of a return. When people/ organizations invest in you, they are doing it with an expectation of improving their
1) An investment is not a sacrifice. An investment has an anticipation of a return. When people/ organizations invest in you, they are doing it with an expectation of improving their
financial position. This means that they believe in you and what they can do with you to improve their financial position. And so, it is important that the the interests of the investor and the investee are well aligned.
2) A business has many partners. One of the most strategic
2) A business has many partners. One of the most strategic
is your financial partners. Your financial partner sees the upside of your business by due diligencing your business plan, people, markets, products, etc. They believe that what you have and what they have is together. They are willing to share relationships, thoughts/ insights,
investments, and more so that you can mutually grow. So, when an investor joins your cap table, it is a strategic step, a statement, a collaboration. In fact, I talk to my current investors routinely about what I'm doing and what I'm thinking about. Their input is sought. They
are a partner. Further, I don't want to invite someone to the table who doesn't "fit". The venture seeks financial partners to help solve problems, not create them.
Therefore, an investment is a material portion of the financial partnership but not the whole.
I am happy to be
Therefore, an investment is a material portion of the financial partnership but not the whole.
I am happy to be
a @Backstage_Cap Headliner, winner of climate cup by @LACIncubator, winner of Big Launch by @TheLaunchPlace, having two strategic angel investors, and our strategic cofounder. We have many business partners who round out our capability and are thankful. Their investment is not
money but are very important. In fact, many of these resources were derived from the relationships with our financial partner. At the end of the day, our expectations of a financial partner need to be strategic in every dimension. I thank mine & will always. Hope this clarifies.
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