🤖 Yaniv Bernstein’s Post

3 reasons founders should be active angel investors: ✅ Broader Perspective: getting an insider's view of a bunch of other startups can be an incredible learning experience that can make you a better founder. ✅ Network Strengthening: there is no better way to build strong relationships with other founders in your community than by putting your money where your mouth is. ✅ Diversification: Most startups fail. Why not give yourself more chances of that big exit by investors in your fellow founders? ...and 2 reasons they shouldn't: ❌ Distraction Potential: angel investing take time. Perhaps you are better off spending that time doing everything you can to make your own startup succeed? ❌ Negative signalling: whether or not you find it distracting, a lot of VCs (and maybe even your employees) won't like to see you investing your time, money, and energy into other people's startups. We talk all about angel investing in today's episode of The Startup Podcast. What do you think? Should founders angel invest?

Joshua Boccamazzo

Investment Principal @ Firemark Ventures

5mo

🤖 Yaniv - like most answers, 'it depends'! First positive two reasons make a lot of sense. And you can minimise the two negative reasons by being relatively passive (being brought deals from people you trust) and where your expertise has a decent chance at de-risking the business (e.g. same industry, similar expertise etc.).

Mark Ghiasy

B2B SaaS - Go to market | Investor & Advisor

5mo

I have seen this both work and not work miserably ;) From an asset allocation and being over indexed to tech in general.. I would err on the side of caution.. and suggest boring old aussie property instead ... However there is an argument to be made, you are increasingly your surface area for.something hitting the mark ( by having a basket of.tech investments ) outside of your actual tech business you work on Goes back to individuals risk reward, time horizons, target goals, etc This topic is quite nuanced...

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The value of spectator vs. player. Both with equally valuable insights. But having that grit, coal face experience of a founder is priceless. Founder's should definitely angel invest - but making sure they don't create any unconscious bias to their experience (i.e. just because somethings did/didn't work for them, doesn't mean it will be the same for the next Founder).

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🤖 Alex Scholz 💸

Agentic | Techstars Allstar Mentor | Startmate First Believer | Angel Investor | Brainthrough.me | Global Professional Services for CX, EX and SaaS

5mo

Distraction if you are VC backed and early stage. Also how do you pass the sophisticated investor test if you are seed or even series a? Later diversification makes sense. There are enough networks etc to have close exchange with other founders. 💸 might be a little bit too steep of an access fee.

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