Importance of Sourcing to a Winning Angel
By Tina Jones
Upon receiving the book Winning Angels-the 7 fundamentals of early stage investing, I was curious to how this was going to tie into the class of Entrepreneurship. The class that I am currently enrolled in is Entrepreneurial Feasibility Analysis. Life is pretty fast paced so I find myself asking how will I ever read this book. I find the book really interesting so far. I am currently reading a section on Sourcing. First, it is important to know what a winning angel is. An Angel in the context of this book is someone willing to invest and take a chance on an entrepreneurial venture. If the business or venture fails, the entrepreneur does not have to pay the funding back. In return for the investment the entrepreneur gives up some control of their company. Many angels invest in hopes of making money when the company sells or sells public stock.
The book speaks from the perspective of the investor. In the section on sourcing, the book stresses that you must know what kind of deal you want to be a part of. Having entrepreneurial experience will help you be a more successful investor according to Winning Angel(Amis 2001, pg. 58). Just for kicks I looked up winning angel sourcing for Hemp. I was not surprised that there are many angel investor sources for Cannabis and hemp. If you are wanting to be a winning angel investor, it is a good idea to concentrate on one industry. Building your expertise in the industry allows you to build relationships and knowledge. It is always a great idea to connect with the industry by attending trade shows, going to association meetings and talking to professionals in the industry. Finally, getting a referral from a successful investor is always helpful in making a successful deal. The book, Winning Angels, points out that a good referrer will know what kind of deal is right for you because they will already know your personality, objectives and interests. If you are interested in becoming an angel investor, know your industry and network with professionals that will help your make successful connections. Please check in next week as I will discuss the importance of evaluating when making your winning angel deal.
Amis, David, and Howard H. Stevenson. Winning Angels: the Seven Fundamentals of Early-Stage Investing. Financial Times Prentice Hall, 2001.
“Cannabis Investors.” New Cannabis Ventures, 4 Oct. 2019, http://www.newcannabisventures.com/cannabis-investors/.