Originally published at: https://blog.12min.com/angels-dragons-and-vultures-summary/
How to Tame Your Investors...and Not Lose Your CompanyIf you are looking for funds to support your company, you have probably considered entering the venture capital market. In our short summary of "Angels, Dragons and Vultures" we acquaint you with what you might expect to find there.
About Simon Acland
Simon Acland has been a successful entrepreneur for more than two decades.
"Angels Dragons and Vultures Summary"If you think you can become the next “big thing” in the business world, and become rich overnight, it is time you started living in reality.
We are not saying it is completely impossible; we are just saying that it is harder than you think and that you will have to learn how to cope with all venture capital’s scary creatures.
In order to survive and thrive in the venture capital’s world, you need first to understand the rules it is built upon.
So, first, let’s explain what venture capitalists are. They are people who invest in young companies and startups. They also help more prominent and more established company enter a new segment of the market or move to a new stage of growth.
Now, knowing that the venture capitalists invest in companies early on and face more significant risk than most investors, you can understand why they expect a higher return.
Be careful to make the distinction between venture capital and private equity. What differentiates them is the kind of companies investors choose to fund.
If you are thinking about searching for new ways to finance your company, first think how much control you are willing to give up to strangers.
If you decided to open your own business because of the independence, it gave you, then maybe you would like to reconsider if you really want to enter the venture capital market.
Your investor can be either a Vulture or an Angel, but he will, either way, have the right to influence your decisions and the working of your company.
So, keep the venture capital market as an open option, but first, consider other ways to raise funds.
In the event of deciding to go for the venture capital option, then prepare yourself by creating a solid and realistic business plan and presentation.
Your business plan is your core marketing tool, which should prove a valuable investment for a venture capitalist to be interested in.
Key Lessons from “Angels Dragons and Vultures”1. Angels and Vultures 2. Swallow Your Pride 3. When You Reach the End
Angels and VulturesVultures usually invest other people’s money to invest in companies. Hence, the vulture’s real clients are investors, and not you.
Angels, on the other hand, most of the time have had a business themselves, so they invest their own money. Dealing with them is much easier.
Swallow Your PrideIf your business is not growing as you expected it to, your Vulture may want to change the leadership before they consider to continue founding. In such a case, swallow your pride, and assume an active role in finding your true successor.
When You Reach the EndMaybe you will choose to leave your company after all. In such a case, be prepared to find many of your exits blocked, depending on the condition of your business when you decide to leave it.
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“Angels Dragons and Vultures” Quotes[bctt tweet="This is my business plan adage: Fiction can lead to friction. But fact does not always get backed." username="get12min"]
[bctt tweet=“In my venture capital career, I backed and sat on the board of 23 companies. Only seven of those companies still had their original chief executive at the end of the journey.” username=“get12min”]
[bctt tweet=“One of the few advantages that a small business has over a large business is the ability to change direction quickly.” username=“get12min”]
[bctt tweet=“This book is about how to keep the Lions, Angels, Dragons and Vultures all on the same side.” username=“get12min”]
[bctt tweet=“Venture capital is often used to allow a company the dangerous luxury of making losses.” username=“get12min”]