Joe Wheeler

Who Are These Angels and VCs

Even though I’ve never tried to raise money, I’ve been asked the question few times because of the conversations I’ve been having about HealthKlerk. Those questions have made me think about the pros and cons associated with taking someone else’s hard earned money and giving them equity in return. It’s made me think about who investors really are. I think it’s probably much more personal than I ever thought it was, almost like a marriage but without the honeymoon. I always saw (and I think most entrepreneurs do) investors as larger than life figures who I thought everyone wanted to be like. The more I work on my new venture and talk with investors, I’m starting to see them in a completely different light.

My Investor Cliff Notes (this is made up BS but I think it’s close)

First and foremost, investors are human just like the rest of us are even though their bank account is fatso. They might talk fast, act weird in social settings, forget your name, seem up today and down tomorrow, but that’s ok, from my perspective this seems to be the norm in their business. Roll with it and get to know who they really are. Second, the good angels/investors want to help other people succeed in areas they share or have similar passions and they won’t waste their time or yours if they don’t see a fit. Often this means you will hear the word NO more times than not. That’s fine too because you don’t want someone’s money who isn’t interested or doesn’t see value in what you are doing.  This is dating, move to the next one until there is a match. Third, they really really are serious about making money and if you aren’t just as serious about making money as an entrepreneur then do yourself a favor and go get a JOB now. Yes, we all want to have control of our own destiny, but don’t fool yourself, the desire to have egregious stacks of cheddar should burn strong in your gut. From what I can tell the great investors never get tired of making money regardless of how much they have and you shouldn’t either.

So don’t take this as any form of advice because remember, I’ve never raised money but when/if I do I’ll think about these basics: Find people who you think can help the most based on their successes, their expertise and their network. Make the investor tell you how they think they can best help and see if it matches your needs. Ask them what they expect as a return on their investment (what constitutes a win). Imagine yourself sharing the good bad and ugly about your company on a weekly basis with this person and how that might play out. Ask what they expect to see from you in the form of updates. Ask them what they like and don’t like about you and the company as it sits pre-investment. 

Maybe my assessment is all wrong, over-thought and useless babble, but it’s where I’m at. It’s my perspective and what I’ve learned over the past couple of months. At least I shared it and maybe it will help someone who doesn’t know how to approach investors about their company.

Now, quit thinking about raising capital and go build something.