5.4 Networking The fourth major mode of proactive involvement in the success of the company involves networking. In addition to investing financial capital, Angels can use networking to increase the social capital or relationship capital of the company. Sometimes these connections are even more important than money. Never underestimate the impact an introduction can have on your investee company’s success. Chances are you know (or know the people that know) the customers, investors or partners that your company needs to connect with to advance. According to Andy Wilkes, Director of NACO, “I like to open doors for the CEO by helping break through organizational barriers they may have with important potential customers or partners. Sometimes I can ask questions my CEOs can’t. This is particularly effective when I’m travelling and can say I’m in town and want to drop by.” Angels can use their networks to connect their companies with customers, suppliers, investors, employees, strategic partners, consultants, accountants, lawyers, bankers and government grants. They can help CEOs from among their investee companies to learn from each other and they can ask other Angels in their network to help as well.
88 A Practical Guide to Angel Investing
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