From having a great idea to growing a business to become the next big thing, there are many challenges to overcome along the way. Every entrepreneur who developed his first MVP and managed to take the product to its revenue-generating phase is familiar with the impediments that can occur.
If we were to approach the topic of creating products that bring value in an underserved or tech-starved industry, we would conclude that the amount of work involved is even higher. Fortunately, there are a lot of young entrepreneurs who are willing to challenge the current market conditions and find new applications for the latest available technologies.
Should you desire to be part of the next big thing, your most valuable resources are extensive know-how, time and funding. Angels Den Funding aims to help both entrepreneurs and investors who decide to combine their resources in order to create mutual long-term benefits.
In 10 years of connecting investors with entrepreneurs, we've learned that investors’ time is highly valuable. Finding a business with high-growth potential is only the first step when creating a successful investment strategy. Depending on the desired level of commitment, an investor can choose to be a mentor to that business or not. As a lead investor, you have the power to steer the startup on its way to success without managing it exclusively.
According to The UK Business Angel Market report, the average time an investor has to spend weekly as a management board member for a startup is between one and two days. This means that the investors get the benefits of being part of a business with great potential without neglecting their own company or changing their priorities.
In 2009, a VC fund famous cyclist Lance Armstrong invested in backed Uber with 100k for their angel funding round. Now, that investment is worth over 3 billion dollars. In a recent interview for CNBC, he admitted that he did not even know where his money went back then.
For Lance Armstrong and many others, investing for the long-term turned out to be a good decision. Whether you are looking to share your business experience and mentor a startup or you simply want to secure your share in what could become the next big thing, equity investment is an alternative to be considered.