What mistake do rookie business angels make? They believe that by watering many beds with capital, a new TikTok will surely sprout somewhere.
They don't realize that statistics work only if every project in the portfolio has the DNA of Canva or Dropbox. It happens only if you've managed to create a pipeline of Wow tech projects.
But why would talented programmers queue up for the uncle who struck it rich in real estate or selling soda?
More likely, an excess of capital will meet a deficit of integrity. One might get a little smarter, another a little richer. The "investor" will sigh and forget angel-investing like a bad dream.
Transferring your expertise from one field to another is inherently difficult. Especially when it's the skill of snagging government contracts or warding off competitors while perched on a gas pipeline. Better to invest in your realm of expertise.
"Only play games when you have an edge," said Ed Thorp, a math professor, author, hedge fund manager, and blackjack researcher.
"Do I have an edge?" That's a question relevant always and everywhere.
Sincerely yours,
-Alexander
About me:
As a business therapist, I help tech founders quickly solve dilemmas at the intersection of business and personality, and boost company value as a result.
How can I help you?
If you've long been trying to understand what is limiting you and/or your business and how to finally give important changes a push, then The Catalyst Session is designed specifically for you. Book it here.