Entrepreneurs Beware! Here are 12 Mistakes Committed by Angel Investors


It will take a while to learn this because it goes against the human nature to want to be helpful when asked.

Mistake #3: Hedging – The seed stage investors keep varying their bet size. Instead, they must keep the individual buy-ins consistent, let the probabilities work themselves out, and reserve some capital for following on later rounds when things go well. Some investors invest in fewer than 20 deals, which is also not good.

Mistake #4: Focusing too much on ideas - The quality of a startup’s team is more important than the idea they’re pursuing. Angels must keep in mind that ideas change, people don’t. Nowadays, a lot of pivots occur frequently in real startups.

Mistake #5: Bargain hunting – Many Angel Investors are bargain hunter. While that will help capturing good deals, it will probably keep them out of hot, richly priced startups which go on to do quite well.