We have now reached the point of understanding the types of Support that can be provided by Angel Investors. An entrepreneur may prefer the role of investors differently than they see themselves when they are the investor. I know that I prefer less hands on from investors as I build my business, but might want a little more participation in the building of another. There is also the stage in life to consider, where retirement may sway a person to invest with less hands-on to enjoy potential revenue without the daily stress. Then again, a person may be bored in retirement and feels a need to be more involved.
Amis and Stevenson write about the Five Participation Roles of Angel Investors. (pg. 249) They identify these roles as:
- Silent Investor – “Here’s my money, go make more.”
- Reserve Force – “If you want help, you only need to ask.”
- Team Member – “I am part of the team, sometimes more than you might expect.”
- Coach – “Let’s talk as often as you need it.”
- Controlling Investor – “You thought it was your company?”
While I used quotes to represent the roles, you get the idea of how each of these roles engages with an entrepreneur. The Reserve Force and Coach felt very similar to me, but reading the definitions again it was clear that Reserve Force can take action where the Coach is a guiding voice. (pg. 250)
I feel that as an investor, I would prefer to be a Silent Investor or Coach if the investment is targeted to be additional income. However, if I am investing for supplemental income, I believe I would be a Reserve Force or Team Member.
Interestingly, I recently came across a job posting on LinkedIn for a Virtual COO. I had not heard of this type of role prior to seeing this posting. Now, as I am going through our required reading, I come across Virtual CEO. (pg. 253) This is a great example of technology use evolution. While I had thought of LinkedIn as having regular jobs listed, I now have an understanding of how entrepreneurs can utilize LinkedIn to find and use potential investors and support. Sure, LinkedIn is meant for networking. However, using it to build a formal support team for a start-up business seems a bit outside the scope. I have now expanded my understanding of how LinkedIn can be used.
I struggle when I see Retail and E-business (eRetail) called out separately. (pg. 257) I have been working in ecommerce for many years and what I have seen is that channels and technology are different, but the fundamentals of sales and marketing remain the same. Often, I see companies creating ‘e’ groups to fill the gap in knowledge and skill within the current workforce. They also create these groups because they cannot identify how they fit into traditional organizations. I look forward to companies bringing the ‘e’ work back into the traditional verticals in the organizations.
Thanks for stopping by.
Amis, David, and Howard H. Stevenson. Winning Angels: the Seven Fundamentals of Early-Stage Investing. Financial Times Prentice Hall, 2001.