article thumbnail

How Many Angels is the Right Amount for a Startup to Have?

Both Sides of the Table

Information Leaks are a Real Problem. Having too many investors can lead to information leaks. Dan Primack talks about the “ other angel problem ,” which is that too few angels get full information rights and are therefore investing in companies they have little information about. Information leaks.

Cap Table 150
article thumbnail

Three Questions Founders Should Ask Scouts Before Taking An Investment

Hunter Walker

As Tomio Geron wrote in this week’s WSJ , At Homebrew , we don’t currently use Scouts, but generally welcome any investors into syndicates who can provide value to the founders. What information about this investment do you share with the sponsoring VC? Information is power. Are you a Scout?

Founder 69
article thumbnail

The 10x Angel. The 0x Angel.

Hunter Walker

If you just need the money, stick unknown angels in an AngelList Syndicate so they have more limited information rights. 10x Angels take long emails offline because face-to-face is easier to collaborate, solve problems, etc than a founder<>investors chain letter. Avoid these folks. 0x Angels don’t use bcc.