What do you do when your Angel turns out to be a Devil?


3

Investor are in it for one thing, profit. That's okay if both the founders and the investors profit. What do you do when the "Angels" who have been funding your work kick out the founders and the innovators saying that "we can take it from here, we don't need you"?
In this case its been over five years, they're eating caviar, we're on food stamps. Is this the way its supposed to work? Who do you turn to?

Funding Finance Angel Failure

asked Jul 22 '11 at 06:38
Blank
Busted Flatt
16 points
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2 Answers


5

First of all -- I am so sorry that things have not worked out. Everything looks great on paper polished with projections; and as you know as the development takes longer, the marketing is harder, the customers don't come, the margins don't materialize even the best of angel intentions can become a nightmare of Devils fire.

You can check with your lawyer to ensure that their action are consistent with the agreements that you signed. If not you have an option for legal recourse.

Let's assume that their actions were consistent with the rights they have in the agreements that you signed with them. then who do you turn to?

Your fellow team members to feel better in mutual commiseration
Your partner, family and kids to feel loved.
Your friends to feel supported
Your bar tender for another round

Your spiritual advisor (rabbi, prient, minister, iman) to learn to forgive so that you can move on stronger and better.

answered Jul 22 '11 at 07:06
Blank
Joseph Barisonzi
12,141 points

0

Investor are in it for one thing, profit. That's okay if both the
founders and the investors profit. What do you do when the "Angels"
who have been funding your work kick out the founders and the
innovators saying that "we can take it from here, we don't need you"?

Technically they shouldn't even able to say this unless you have the worst contract ever with them. Which is something you should have spent some time in the beginning not 5 years later.

In this case its been over five years, they're eating caviar, we're
on food stamps.

Considering these are Angels not VC, what's their stake in the company? In theory if you are making money, go ahead and take money out of the business.

On a side not most of the Angels were eating caviar before they even invested into something.

answered Jul 25 '11 at 00:22
Blank
The Dictator
2,305 points

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Funding Finance Angel Failure