Startups and Angel Investors Advisory Boards

Startups in all the fields of business are being created every day. Thanks to the new Digital Technologies, these startups can reach customers everywhere provided that they offer the right flavor of products or services to their target markets. Digital transformation also affected positively lots of the governmental and licensing bodies in Countries helping their startups grow and expand. The result is more startups and more need for funds for them.

As in every business, the availability of funds is a big hurdle in the life cycle start of startups. They are essential in transferring an idea to early stage and hopefully to a fully operational company. Funds are available for startups from different sources and comes with different terms and conditions. Angel Investment funding remains the most suitable for Startups as it can be coming from family, friends or professionals totally unknown to the startup founders. They all want to help and want to have their money back. However, they also know that there is a good possibility of losing the funds and still they would be willing to invest with the entrepreneurs that can convince them not only with their ideas, but also with the amount of work they are willing to put for the idea to materialize. Competition for funds is as fierce as the companies’ competition in selling their products or services, if not more, as there will never be enough funds for all the ideas.

From an Angel Investment point of view, successful entrepreneurs are the ones who exercise all the options to have a successful company, not just the ones who reach can transfer the idea to a successful company. In this complex ecosystem, the need for experience in the different aspects of running the business is becoming more and more needed. Large companies have multiple levels of guidance and governance, one team, no matter how talented they are cannot react to all the changes happening every day. Today’s startups need to have advisory boards in addition to their founders’ boards, if they have an active one. Many startups who join accelerators or incubators have mentors, once they are out; they have to rely on the management team and on the contribution of the shareholders, which is not enough in the complex business world of today in lots of cases.

We believe that Startups and Small companies should create advisory boards where the majority of the members should be Angel Investors and Professionals non-related to the company in terms of investment nor employment. They will have lots of input to the management team whom are usually fully consumed in the day-to-day activities. The advisory board will be able to give non-conflicted advice about the products / services of the company and how the market is moving. Being Angel Investors, they will have a certain level of know-how and experience with startups that will allow them to discuss openly with the management their concerns and shed lights on any aspects that might be missed with the companies’ challenges. In addition, they can also be target Angel Investors in future rounds or future companies.

We encourage all Startups to create advisory boards from non-related Angel Investors and professionals; they will make a difference and increase the success probabilities.