angel-investorsI noticed a pattern that some of the founders of successful early stage companies (Series A-C) are doing decent amount of angel investing to new startups.
Where do they find enough money to angel invest in so much so early? Do they pay themselves $5m salary?
I see two patterns.
First, more founders are attracted to angel investing as a key aspiration.
Second, more investors recognise the positive value of startups retaining the culture and connectedness of early stages (through co-working and accelerators).
So as a company grows and generates value for shareholders and other stakeholders, founders who are willing to trade early cash for future holdings can achieve that lots of ways. Where in the past, outside interests would have reduced the number of potential investors dramatically, today it’s a neutral or even positive factor.
I suspect this is one reason that corporate incubators and small venture activities haven’t grown in the way that was being predicted. Corporates typically use outside interests as a perk (and development tool) for only their few most senior staff, so it’s harder for them to change old habits with investments that are viewed as close partnerships getting privileged access to people and channels or as future product, market or talent acquisitions.
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