Investing in Startups – Pitching Is Personal

Pitching is personal. We can crunch the numbers, scrutinize résumés, and ask the difficult financial questions, but at the end of the day, decisions will be made on intangibles—gut responses and feelings that move founders to create and pitch and angels to act.

Why are these emotional intangibles center stage?

Consider for a moment how risky angel investing really is. It’s highly illiquid. Your money can be parked in the investment for a long time, possibly eight to ten years. That’s a long stretch to wait to see the fruits of your labor. You need to do a ton of research on each and every investment you make, and the startups you look at often have little or no financial history—only projections into an uncertain future.

If it’s so risky, why keep doing it? “Because it’s addictive,” says Ross Blankenship, an angel investor and startup coach. “It’s enrapturing to see a company that was valued at $2 million and then it becomes a public company, now worth $4 billion. I mean, just from a financial standpoint, that’s awesome.” Success …

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