Why does everyone think they should be angel financed?

Imgres-1Are we going to see angel financing change in 2013?  This is a topic that I have written about before and I keep thinking about how financing in general is going to tighten up in 2013. What exactly does that mean for the first round of angels.  Obviously time will tell but here is what is rambling around in my head.

In the past six months I have seen business plans from every industry and that includes consumer products, clothing manufacturing, technology, real estate projects, incubators, social apps in third world countries, legal help online, farm to table, etc.  You get the point.  

My question is why does everyone think they need to be angel financed?  I am a big believer in building the product first, getting some traction and proving to the investor community that there is a business model there that will make the investors their money back and more.  I have invested in many of those companies.  It is certainly a risk no matter which way you cut it but at least there is some data that is appealing.  

As an investor I really do think about the big picture.  Does this product make sense?  Does it fill a void in a marketplace?  Do I see this as a company with potential to grow?  There are so many companies that I see who have been funded that I am pretty damn sure are life style businesses not businesses that should be taking investors money unless of course it is friends/family or one strategic person.

What is going to happen in 2013?  I hope the funding doesn't stop but I hope that angels become more focused (like the VC world will become).  It is time for more people to do a little more boot strapping before they go out looking for cash.  

blog comments powered by Disqus

Joanne Wilson Joanne Wilson loves food, books, and music. She lives in New York City. Her husband Fred and children Jessica, Emily, and Josh are bloggers too. More »

gotham gal updates

RSS    Email updates    Gotham Gal Twitter updates

ask gotham gal

Powered by Formspring.

books of the moment

  • Rachel Kushner: The Flamethrowers: A Novel

    Rachel Kushner: The Flamethrowers: A Novel
    A beautiful intelligently written book that threads together NYC and Rome in the 1970's. The prose is just amazing. There is an underlying theme about lies and trust. The main character, Reno, whose eyes the book is written through is like a sponge taking in a world and essentially educating herself. I admit I did not love the ending and the book bounces around a bit although an interesting look at a time that bounced around too so the story defines those times.

  • Peggy Riley: Amity & Sorrow: A Novel

    Peggy Riley: Amity & Sorrow: A Novel
    A mother drives for days with her daughters and ends up in a random Oklahoma town after crashing the car. They come from a polygamous community where there were 50 wives. The mother had grown up knowing life outside that community. Over time, after leaving, she almost becomes deprogrammed. The realization of what she did to her daughters who no nothing outside the world they came from including how to read. Then there is the family that brought them in. It is a fascinating story. Well written. Worthy read.

  • Charles Graeber: The Good Nurse: A True Story of Medicine, Madness, and Murder

    Charles Graeber: The Good Nurse: A True Story of Medicine, Madness, and Murder
    An amazing true story of a male nurse who was arrested in 2002. I actually remember the story as I followed it in the papers. This nurse was a serial killer who had probably murdered over 400 patients that were under his care. A seriously well researched book. Great read.

  • Meg Wolitzer: The Interestings: A Novel

    Meg Wolitzer: The Interestings: A Novel
    Wolitzer writes about a group of camp friends who all come from different walks of life (some on scholarship) as their friendships continue through their mid-50s. At the beginning the story seems trite but as you continue to read there is a lot of be said. The story is sticking with me. She makes the case that everything that happens to you from your childhood makes an impact on who you become or don't become. Worthy read.

  • Elizabeth Strout: The Burgess Boys: A Novel

    Elizabeth Strout: The Burgess Boys: A Novel
    Strouts last book won a Pulitzer. She focuses on family issues. I enjoyed this book much more than Olive Ketteredge which I found utterly depressing. This book follows two brothers and a sister who live in the shadow of their fathers accidental death. Like most siblings, all have turned out very different yet they are connected. I did not love any of the characters, like her last book, yet as The Burgess Boys moves forward and memories are revealed, it is an interesting perspective on human character.

  • Tamara Shopsin: Mumbai New York Scranton: A Memoir

    Tamara Shopsin: Mumbai New York Scranton: A Memoir
    Great book. A witty spare inventive personal diary of Tamara journey from Indian to New York to Scranton. Really really enjoyed the book.

  • Michael Lavigne: The Wanting: A Novel

    Michael Lavigne: The Wanting: A Novel
    An incredible book that tells the human side of the many layered issues in the Middle East. From immigrating to Israel from Moscow, to being a victim of a suicide bomber yet surviving, to being pulled into an Israeli radical group. Each character is connected. Very layered well written book. Powerful

  • Alessandro Piol: Tech and the City: The Making of New York's Startup Community

    Alessandro Piol: Tech and the City: The Making of New York's Startup Community
    A history of the Internet that I lived through. Great job of recording what happened.

  • Amity Gaige: Schroder: A Novel

    Amity Gaige: Schroder: A Novel
    Not sure how much I loved this book. A father loses his child in divorce and decides to kidnap his own daughter. He is not a stable person but he obviously loves his daughter. His own childhood has made him a disconnected human being. An interesting journey but not sure I'd recommend.

  • Ernest Hemingway: The Old Man and the Sea

    Ernest Hemingway: The Old Man and the Sea
    Classic.