In these credit-starved days entrepreneurs would be forgiven for saying ‘yes’ to the first investment source to offer them money, but when it comes to business angels you’d be wise to think twice.
Earlier today we talked about the sometimes awkward relationship between business owners and venture capital investors, who, it is suggested, can be less than committed to firms that pitch for funding.
But what about business angels – private individuals who having made some cash of their own are looking to invest in growing businesses? This article on Forbes.com suggests there are pitfalls here too.
While, the majority are honest hard-working types who want to share their experience with businesses full of potential, some are not all they seem. Beware control freaks, has-beens, numbskulls and, God forbid, brokers in drag.
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