5 Grow Good Companies
Introduction to Angel Investing 1 How to Start 2 Set Goals 3 Pick Good Companies 4 Make Good Deals 5 Grow Good Companies 6 Get Your Investment Back
Step 4: Grow Good Companies ü Ask Questions
ü Unwrap Assumptions ü Use Your Connections
After the investment is made, Angels add value to their investees by sitting on boards, providing corporate governance and executive expertise, and leveraging their capital to obtain government grants.
Setting up for Success: 4 modes for interacting with a company 1. Governance: meeting, coaching, board, reporting 2. Metrics: metrics that matter, orient to shareholder value, changes by stage 3. Money: how much at each stage, will there be a follow-on? 4. Network: introductions, build trust, make introductions, connections help
Research shows that Angels who spend time helping grow their companies get a better Return on Investment (ROI).
Return on Investment
3.7X
2.7X
1.3X
1–2/year
Average
1–2/month
Time spent with company
Source: Wiltbank & Boeker
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| Introduction to Angel Investing: How to Start
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