Recently I was talking with an angel investor and we were going over different strategies and learnings, many of which are in the 26 Lessons Learned from Investing in 26 Startups. We started talking about ways investors can add value to a startup beyond the money, and simplified it down to three main areas:
- Strategy – Entrepreneurs have a tendency to work more in the business rather than on the business. One area investors can help with is strategy and getting the entrepreneur to think longer term.
- Sales – Introducing an entrepreneur to a potential customer is incredibly valuable. Reversing it, entrepreneurs should ask potential investors for intros to their portfolio companies.
- Talent – Finding great employees is hard and time consuming. A big benefit for entrepreneurs is connecting them with awesome people that can really add value.
So, the next time an investor or potential investor asks how they can help, think about strategy, sales, and talent and take them up on their offer.
What else? What are some more thoughts on the three mains ways investors add value?