{"id":27533,"date":"2017-11-11T06:43:51","date_gmt":"2017-11-11T06:43:51","guid":{"rendered":"https:\/\/drprem.com\/digital-marketing\/?p=27533"},"modified":"2020-05-15T09:08:31","modified_gmt":"2020-05-15T09:08:31","slug":"3-signs-your-angel-investor-is-actually-not-an-angel","status":"publish","type":"post","link":"https:\/\/drprem.com\/ai-marketing\/3-signs-your-angel-investor-is-actually-not-an-angel","title":{"rendered":"3 Signs Your Angel Investor is Actually Not an Angel"},"content":{"rendered":"
\n\"Dr<\/a>\n<\/div>\n

Who doesn\u2019t love angel investors? Unlike banks, they slice through red tape and bureaucracy. And unlike friends and family, they don\u2019t remind you at every wedding, anniversary, birthday party and other get-togethers.<\/p>\n

However, sometimes angel investors aren\u2019t what they seem: because they aren\u2019t really angel investors at all! They\u2019re (to stick with the spiritual metaphors) the devil\u2019s agent, because instead of helping your business surge towards stability and profitability, they \u2014 sometimes through design, and other times through sheer incompetence \u2014 hurl you in the other direction: towards staggering losses, and either insolvency or an emergency forced sell-off.<\/p>\n

Obviously, you need to ensure that the angel investor (or investors) in your midst are on your team and guiding you in the right direction. To that end, here are three signs to watch out for:<\/p>\n

    \n
  1. They want \u2014 instead of need \u2014 a piece of the action.<\/strong><\/li>\n<\/ol>\n

    \"ROI\"<\/a>This is a subtle sign, but it\u2019s also arguably the most important to be on the alert about. Many legitimate angel investors need to take an equity position; simply because it\u2019s how they reduce risk, and maximize their ROI. This makes sense.<\/p>\n

    However, false angel investors want \u2014 rather than need \u2014 a piece of the action, because (and here\u2019s the critical point!) they want to take over your business. That\u2019s their end game, and they\u2019re putting themselves in a position where selling controlling interest \u2014 or maybe the whole ball of wax \u2014 will be your only viable option.<\/p>\n

    Now, there\u2019s nothing wrong with selling your business to an angel investor (or anyone else for that matter) if that\u2019s ultimately what you decide to do. However, make sure that this is something you carefully and consciously choose, and not something that is deceptively chosen on your behalf by a manipulative and unprincipled investor who leads you down a one-way street, and into a deep, dark pitfall.<\/p>\n

      \n
    1. They start micromanaging.<\/strong><\/li>\n<\/ol>\n

      \"investor\"<\/a><\/p>

      \n\"Dr<\/a>\n<\/div>\n\n

      It\u2019s great \u2014 and often quite valuable \u2014 for angel investors to lend their expertise and knowledge. However, if they toss away their investor hat and don a management one, then be aware that things probably aren\u2019t going to get better as the days, weeks and months unfold: they\u2019re going to get worse.<\/p>\n

      It\u2019s essential for angel investors to understand \u2014 and embrace \u2014 the fact that they\u2019re investors (hence the name!), and not managers. Yes, they can provide suggestions and offer guidance. But no, they shouldn\u2019t assume status that hasn\u2019t been earned or approved. If that\u2019s what they have in mind, they\u2019re welcome to use their own resources to launch a business rather than trying and operating yours.<\/p>\n

        \n
      1. They\u2019re not in it for the long haul.<\/strong><\/li>\n<\/ol>\n

        \"investor\"<\/a>Angel investing isn\u2019t for the faint of hearted or the excessively risk adverse. There are good quarters where sales are plentiful and cash flow is flowing \u2014 and then there are bad quarters, where everything that can go wrong seems to do so.<\/p>\n

        If your investors can\u2019t take the heat and threaten to pull-up stakes when the going gets rough, then they aren\u2019t partners \u2014 because they aren\u2019t sharing the risk. Instead, they should be buying government bonds where the principal is guaranteed.<\/p>\n

        Of course, with this being said, angel investors have the right \u2014 and even the obligation \u2014 to escalate issues and intervene if the growth plan goes off track. But they should lean forward and exhaust all reasonable opportunities to be part of the solution, and only head for exit as a last resort.<\/p>\n

        The Bottom Line<\/strong>\u00a0<\/strong><\/p>\n

        Watching out for these signals and symptoms isn\u2019t like sitting back and viewing a giant digital sign by the Landmark Sign Company<\/a>. You need to be able to read between the lines, see around corners, and trust your intuition. Because where there\u2019s smoke there\u2019s usually fire, and when you suspect that an angel investor is really the devil\u2019s agent, you should look deeper into it rather than looking away. Your business\u2019s success \u2014 and perhaps even its survival \u2014 may depend on it!<\/p>\n

        Article Submitted By Community Writer<\/p>\n

        \n\"Dr<\/a>\r\n\r\n\r\n\n<\/div>\n\n
        <\/div>","protected":false},"excerpt":{"rendered":"

        Who doesn\u2019t love angel investors? Unlike banks, they slice through red tape and bureaucracy. And unlike friends and family, they don\u2019t remind you at every wedding, anniversary, birthday party and other get-togethers.<\/p>\n","protected":false},"author":107,"featured_media":27534,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[3056],"tags":[5849,99,33,787,3736,5848,5847,46],"class_list":["post-27533","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-offbeat","tag-angel-investor","tag-business","tag-featured","tag-investors","tag-micromanaging","tag-risk-adverse","tag-symptoms","tag-top"],"_links":{"self":[{"href":"https:\/\/drprem.com\/ai-marketing\/wp-json\/wp\/v2\/posts\/27533","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/drprem.com\/ai-marketing\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/drprem.com\/ai-marketing\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/drprem.com\/ai-marketing\/wp-json\/wp\/v2\/users\/107"}],"replies":[{"embeddable":true,"href":"https:\/\/drprem.com\/ai-marketing\/wp-json\/wp\/v2\/comments?post=27533"}],"version-history":[{"count":0,"href":"https:\/\/drprem.com\/ai-marketing\/wp-json\/wp\/v2\/posts\/27533\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/drprem.com\/ai-marketing\/wp-json\/wp\/v2\/media\/27534"}],"wp:attachment":[{"href":"https:\/\/drprem.com\/ai-marketing\/wp-json\/wp\/v2\/media?parent=27533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/drprem.com\/ai-marketing\/wp-json\/wp\/v2\/categories?post=27533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/drprem.com\/ai-marketing\/wp-json\/wp\/v2\/tags?post=27533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}