Читать книгу How To Become A Business Angel - Richard Hargreaves - Страница 26

This case study is an extreme illustration of the slowness of VCs compared to angels.

I began negotiating with one such VC firm on behalf of a young technology company for a £500,000 investment in February and it completed in August. However, it was August the following year – a total of 20 months. It even took until December to have an agreed terms sheet.

In the meantime a number of angels looked at the opportunity and invested, taking on average six weeks to do so.

As you might expect given the take time taken, the documentation was as complicated and onerous as it gets. I don’t believe for a second that this protected the fund investor better in any meaningful way. It was, though, a sure way to start the relationship between entrepreneur and investor badly.