Entrepreneurs Beware! Here are 12 Mistakes Committed by Angel Investors


Bangalore: Angel Investors are named so, as they come like an angel in an entrepreneur’s life and lift them up on the ladder of success. But these angels are found to be committing few mistakes. They sometimes do some miscalculations and forced errors too.

Let’s have a look at some of them:

Mistake #1: Nitpicking on terms – Angels sometimes grip on corner cases and lose focus. They keep dragging out the investment process unnecessarily. Small technical victories on deal terms repeatedly have zero impact on the result. Instead, angels should save negotiating energy for a few high-level features that become significant if the company scales up, like follow-on rights.

Mistake #2: Giving bad advice - Early stage companies function in essentially puzzling environments. They get overflowed by contradicting advice from all sides. And sometimes an angel makes it worse by adding to these advices. They must have the discipline to say “I don’t know” when they truly don’t.