The main issue is that Kumara is starting his new project, Punching, after leaving his successful startup, Household. Punching is an internet-based customer loyalty program that provides website owners and mobile application developers with a tool to reward customers based on specific activities. In the past, early stage financing was provided to startups to help them with their research and development, prototype development, and team building. The difference between angel investors and PVC investors lies in their goals, sources of funds, roles, and impacts. Angel investors typically fund early stage ventures and aim to be mentors in the industry they are interested in. PVC investors, on the other hand, prefer later stage deals and prioritize a big exit with high return expectations. They have personal or corporate wealth as their source of funds."The text di
...scusses the impacts, advantages, and disadvantages of angel and super angel investors. It also provides recommendations for a mix of these investors to obtain financial support, guidance, and contacts.
According to the text, angel investors have a day-to-day business expertise and are more committed in the long term. They attract other investors through their social capital. However, they are less likely to accept mistakes and may have conflicts of interest if they invest in multiple businesses.
On the other hand, super angel investors offer a large sum of money and have a company rather than individual backing. They have a large network of contacts and are willing to invest in early-stage startups. They can provide hands-on or hands-off guidance and advice from various sources. However, they may not be keen on small startups and have a shorter time frame for investment. They
may also require giving up large amounts of equity.
The recommendation is to have a mix of angel and super angel investors. This approach allows for obtaining large sums of money, gaining advice and guidance from experienced entrepreneurs, and expanding the network of contacts. The use of legal papers and contracts is discouraged as it would make it harder to back out if things don't go as expected. It is suggested to go with super angels because their goal aligns with turning the business into a billion-dollar company.
Furthermore, it is emphasized that personal guidance is preferred over angels trying to give guidance. The reasons behind mixing angels and super angels are explained. Angels use their own money, which may limit their ability to provide additional funding in the future. However, if an angel has a lot of capital, this limitation may not apply.
Overall, the text advocates for a strategic mix of angel and super angel investors to maximize financial support, guidance, and networking opportunities while minimizing potential conflicts and limitations.The advisory board will include both angels and superannuates who are entrepreneurs themselves and are comfortable taking risks. They will only support decisions that are considered risky, as they understand the mindset of entrepreneurs. On the other hand, superannuates have a significant amount of capital invested and want to avoid any potential waste of their money. While angels have industry experience, they might not have access to additional funds beyond their personal wealth.
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