ENT 640 — Sourcing

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.

Tina Jones

ENT 640

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/.

10 thoughts on “ENT 640 — Sourcing

  1. Tina,
    Excellent summary on sourcing from our assigned reading! This book has been extremely interesting even and especially with learning the definition of what a “Winning Angel” is. I find it fascinating to know that entrepreneurs can find investment options that allow for someone to invest in exchange for a share in the company without using out of pocket expenses. It is best for us as entrepreneurs to know what we want when it comes to making a deal, otherwise we are wasting time trying to figure it out along the way.

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    1. Audrey,
      Thank you for the comment. I love watching shark tank. I hate to say this but the winning angels remind me of the panel on the television show. I started my business with a loan. It was so scary. When we decided to open the business, we did not have any money. We built a building and leased the spot with the option to buy. Here we are twenty-one years later, the building is paid for and we bought the land. I think the worst thing about having an investor is having to deal with an investor. I am glad we are operating on a small scale with a family business.
      Tina

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  2. Finding ones niche in investing can be a great strategy, especially if you want to be viewed as the expert at hemp or cannabis investing, or meat packing supply chain as referenced in the book. However, something the book did not touch on as much as I though it would is becoming an expert in a certain type of investing. Some angels have highly diversified portfolios in terms of the type of businesses or sectors they are involved in, yet their deals and leadership seemingly follow very similar if not uniform strategies. Maybe this was supposed to be an understood concept or a fundamental principle one develops either before or after the sourcing stage. Regardless, finding ones niche, whether it be a type of business or investment style is a great path to sustained success. Specializing and building on your strengths is something I’ve heard time and again from entrepreneurs and leaders in various industries as well.

    Liked by 1 person

    1. I agree that finding your niche is important. Having knowledge of your investments allows you to make better decisions. I am in no way an expert in hemp but having the observed this market over the last year has me a little worried about investing money in it right now. Thank you for your comment. Have a wonderful day.

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  3. Hey Tina! I really enjoyed your blog on sourcing. It was to the point and easy for me to understand and read. You were able to explain what a “Winning Angel” is so clearly without all of the extra words I read from the book. I hadn’t heard of a Winning Angel before this course. I’m in the beginning of investing, so I hope the remaining chapters help me even more. I’m not very good at this blogging thing. I’m trying to have mine where people can comment without signing in. I really like the display of your blog. It’s easy to navigate around the page. You’re doing great! Nice talking to you again! Good luck in this course.
    Sincerely,
    Rebecca

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    1. Thank you so much for your kind words in your comment. The concept of a Winning Angel was brand new to me too. I am excited to learn about investing and potential ways to invest. I look forward to working with you in class again.
      Tina

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  4. Hi Tina!

    We had a similar thought going into our reading for this class. “How will it tie into entrepreneurship?” Investment is a part of entrepreneurship that not everyone chooses to dip into. I can’t say that I blame them, but some entrepreneurs don’t have much of a choice. I love how you looked up sourcing for your industry! You may not be interested now, but if it ever becomes a “need” in the future, you will have a great foundation on what to do!

    Elaina

    Liked by 1 person

    1. Elaina,
      Thank you so much for your response to my post. I am lucky that right now I am on a small scale and choose not to seek out investors. This book has been very informative on investing.
      Tina

      Like

  5. I enjoyed reading your post on sourcing! The book has certainly been an interesting read and has been helpful in understanding investing from the perspective of an investor, which will be helpful to entrepreneurs that are interested in seeking investors when creating their presentations.

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