A founder recently said to me: “Our problem is that business angels don’t understand our topic.”
This sentence is used surprisingly often in fundraising. Founders work on complex technologies, new markets or business models that require explanation. The logical conclusion then seems to be: we simply need to do a better job of explaining to investors what we do.
But this is often where the problem lies.
Why investors don’t have to understand everything – at least at the beginning
Most business angels are private investors. They don’t invest because they have to. They invest when they feel like it.