When we sold our startup in 1998 I thought one day Id do some angelinvesting. You give a startup money and they give you stock. When youhear people talking about a successful angel investor, theyre notsaying "He got a 4x liquidation preference." Thats how you win: by investing in the right startups. Thats ok. MORE >>

We are talking about angel investors here, meaning people who invest their own money in early-stage startups for a share of the equity. Generally, the same criteria applies to venture capital investors, although they invest other people’s money, at a later stage, in larger amounts. Accordingly, investors will decline. MORE >>

Investors often say that they invest in people first, then the market and lastly, the idea. When an investor asks for a pitch, they don’t say, “Tell me why you’ve got what it takes to be a startup founder.&# Investors see a lot of pitches. Instead it’s always, “What’s your idea?&# MORE >>

I've written before about how the very first email to an angel investor really matters, or at least to this angel investor. Founders should send emails to investors. appreciate what it takes to get something off the ground and how most startups are movements. There are a ton of angel investors. MORE >>

Thus when an investor declines your funding request, you need to curb your anger and understand the real reason for this outcome. Some investors say half the ideas pitched to them don’t have any plan at all, even though some have great potential. Investors bet on the team, more than the business plan. None of these get funded. MORE >>