You simply cannot be a good business angel investor without also being an entrepreneur. Because of this “two-tiered title”, I can’t help but feel so excited and inspired every time I hear or read about a relatively new start-up selling for a huge windfall. I guess those types of exits reap wonderful rewards for both the entrepreneur and investor.
Over the past few years, we have witnessed some truly spectacular start-up acquisitions. eBay bought VoIP company Skype for $2.6 billion. Google bought YouTube for $1.65 billion. News Corp. bought MySpace for $580 million. The list goes on and as the internet expands in both speed and scale, I can only imagine what lies ahead. In all of these deals, both the entrepreneur founders and the early-stage investors were winners.
It does make one think, “what is better to focus on, my entrepreneurial creativity or finding and investing in others’ entrepreneurial creativity?”.
There is no single answer. I personally think it has everything to do with timing and resources available to you. For example, if you just invested in a start-up with what you thought had the right people and drive in place, only to find out that they need you to step in and provide the right direction (and capital) in order to succeed.
I often say that in the end, logic prevails (well, a nice thought anyway). Perhaps it’s as simple as holding the vision and belief in the object you wish to achieve. If so, it could take you down either road. In the end, if you have what it takes and the right eye for opportunity, you will get there.