“I need to get into bed with you”

That´s what the investor said…

There are many benefits to having angel investors.

You get capital + expertise + a relevant network, in the best cases. Angel investors can also become your best ambassadors and supporters. How awesome is that?

Startup-investor relationships can, however, turn very sour if you get the wrong ones on board.

Watch out! Here is what can happen:

1. Control loss: investors may want to influence the business’s direction.
2. Giving up a large portion of ownership. Some investors are greedy. To get a higher stake, they can push for a low valuation. They can also ask for non-dilution clauses which will cause you issues with future investors.
3. The decision-making process may change: you may need to take their input and feedback into account.
4. Pressure to deliver returns and growth at any cost. Investors are looking to make a return on their investment. That´s why they invest. And if things go wrong, guess who takes the blame?
5. Pressure to sell too early: investors may want to exit their investment at some point, which can put pressure on the business to sell or go public.
6. Potential for misalignment: investors may have different…