Truth Angel Blog | Mind Map

What should we do

Entrepreneurs

1. Avoid believing &quot;specialness&quot; of angels as a category of investors

No &quot;value difference&quot; to F&F

2. Understand the true alternatives, such as banks and bootstrapping

3. Develop an accurate profile of angel investors

4. Understand what angels are looking for no need to be next Google

5. Have a realistic sense when one can get angel money

It's much later than one thinks (hopes)

6. Be aware that raising money as a process is typically haphazard

7. Understand what you can get out of angels

It's just money, actually

8. Not all angels are the same a small minority can provide more than just the money

Angels

1. Have realistic earning expectations

2. Ask yourself why you want to make angel investment

3. Have realistic expectations of what you will get in return

4. It's not difficult to become an angel investor

5. Remember the angel groups

6. Be selective and focus

F&F investors

Treat angels with less awe

Don't believe the added value

VC

Angel goals are not completely aligned with VC goals

Policy Makers

1. Remember that the angel market is small

2. Remember the differences WITHIN angel market

Remember that the majority is nonaccredited investors

3. Carefully assess the reasons to intervene

Tax credits do not work

Could lead to few startup overvaluation

Motivate to invest in angel groups

And help the nonaccredited investors

Added value

No added value

There are few exceptions

It's just money

Motivations to invest

To remain involved in the startup scene

To learn something new

To find a job

As a hobby

To make money

To give back to the community

All variations

Sophistication

Naive

Knowledgeable

Role

Passive

Active

Investment stages

Early stage

Later stage

Investment size

Small

Large

Median 10,000 USD

Instrument

Debt

Equity

Risk level

High

Low

Motivations to invest

To remain involved in the startup scene

To learn something new

To find a job

As a hobby

To make money

To give back to the community

Typical investment target

Also service business

Typically not highgrowth business

Not only hightech

Later stage

Often homebased

Typical startup

No complete management team in place

Older entrepreneurs than in media

More educated

Often solo entrepreneurs

Often not even only startup, 100% focus on one company not needed

Market size

Angel investments = VC investments

Angle investments is 14% of all informal investments

3% of M&A market