What I Believe – Angel Investor Edition
My responsibilities as an angel investor (note: I’m no longer an angel investor).
- I believe that I should let people know when I’m making new angel investor investments and when I’m not (right now, October 28 2016, I’m not making new investments)
- I believe that I should make it clear regarding the types of investments I make. They are companies located within 70 miles from the DC Beltway that are Business to Business product companies.
- I believe that I should make it clear in what I do not invest and that includes but is not limited to: a) business to consumer, b) business to government, c) service firms, d) mobile apps, e) online media where the value depends on continued production of content and/or revenues are primarily derived from advertisements.
- I believe in investing in people and I won’t invest if I’m not comfortable with the entire team.
- I believe that people should understand how to approach me which is don’t approach me. I get my deal flow through the Dingman Angels or through my network. I don’t invest in companies that don’t respect this. So don’t just email me because I use to be an Angel Investor… got it?
- I believe that valuations alone are not a deal breaker as long as the value can be rationally explained based on market size, revenue, margins, and like-company valuations.
- I believe that entrepreneurs should understand that I only invest in C Corps (no S Corps or LLCs) and that I only invest in convertible debt and preferred stock (no common stock and no pure debt).
- I don’t believe in investing in hopes, dreams, plans on napkins, or part-time CEOs. If you have a day job and aren’t all-in in your company then I’m not even partially-in.
- I believe that founders deserve to know quickly if I am interested in investing and proceeding to due diligence or not.
- I believe that startup CEOs should understand that when I meet with them as an investor, I am not meeting with them to sell them product and services or negotiate stock for sweat-equity. When I’m meeting with you as an investor it is to make a cash investment in your firm. I am not a pretangel. Actually, I’m not even an angel any longer.
- I believe in investing for profit and not charity while putting money to work in the DC region.
If you don’t hear back from me you probably didn’t read #4. I’m a reformed Angel Investor.