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Be a Worth-Add Investor
One in all my favourite issues about early-stage investing is that the businesses are sufficiently small that buyers even have an opportunity to make a significant impression.
Within the VC/angel world, this is named being a “value-add investor.” As on-line startup buyers, we will actually add worth as properly. However we have now to appreciate that we will’t assist each firm in our portfolio. So it’s finest to concentrate on those the place our experience can actually make a distinction.
I sometimes provide so as to add worth within the following methods:
- Recommendation on constructing a publication
- Web site copy suggestions
- Introductions when attainable
These are the areas the place I may help most. And since I’ve 100+ startup investments, I sometimes solely make the provide once I actually imagine they will use my assist.
Including worth to your investments is usually a rewarding expertise. And generally if the founders actually admire it, they’ll give you advisory shares or another type of compensation. In a single occasion, this has labored out rather well for me.
However you shouldn’t go into including worth anticipating to be rewarded with advisory shares. It’s extra about serving to out your investments and increasing your private community. The non-monetary rewards that include serving to an organization you imagine in discover success are one of many distinctive perks that startup investing affords. And all of us have some talent or connection we will deliver to the desk.
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