

Ask HN: Money is not the constraint. Should I talk to angels? - steilpass

So I have startup idea and I have implemented a fare bit. We hope to launch a private beta in the next couple of weeks. Right now I bootstrap this besides my day job.<p>My question is: Should I keep slowly boostraping or should I start talking to angels? What other benefits besides money does a good angel have? Should I care about his connections or will the product sell itself if its good enough?
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michael_dorfman
I wouldn't talk to angels at this point, if I were you.

If you're able to bootstrap your way through your private beta, do it. If
possible, I'd hold off talking to angels until you've found a repeatable,
scalable customer acquisition processes. If you manage to do so, you'll be in
a much stronger position with the angels, and you'll also have a clear idea on
how to effectively use the money raised.

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sendos
This may be a stupid question, but if a startup has found a "repeatable,
scalable customer acquisition process" why would they need to talk to angels?

Presumably your repeatable, scalable customer acquisition process will be
bringing in lots of customers, who in turn will bring in income. So, you won't
much need angels for money.

Also, the fact that you have a repeatable, scalable customer acquisition
process means that you've solved one of the most, if not _the_ most important
problems a startup faces. So, you won't much need angels for the connections
and advice on how to increase your traction.

Of course the above is over-simplifying a bit. Even with income and more and
more customers signing up, you may still need money to expand at the rate you
want. Still, once a startup finds a repeatable, scalable customer acquisition
process, it's hard to see much need for angel investors.

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michael_dorfman
_Still, once a startup finds a repeatable, scalable customer acquisition
process, it's hard to see much need for angel investors._

I disagree. What's more, I think you do, too. You said as much a sentence
earlier: _Even with income and more and more customers signing up, you may
still need money to expand at the rate you want._

If you've got a repeatable, scalable customer acquisition strategy, more money
in means more customers (and profit) out. In other words, you've built the
money machine-- now you use angel money to get it running full speed.

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harscoat
Think of some Angels as potential partners. Select those which advice, help,
network can help you and start the conversation. Seeing that you do not need
their money will make them more interested in your business in the future.

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vessenes
You should talk to angels, in my opinion: fundraising takes time, and building
greed / need in the investors takes time. Since you don't need their money,
now is the perfect time to go see them.

You'll find a wide range of personal suitability (connections, meeting of the
minds, smarts about your space) in the meetings, so definitely worth doing.

Now, if your product doesn't need money because it's paying for itself, then
you DEFINITELY should go talk to investors a) because you'll come away feeling
awesome about yourself, and b) because you'll be able to command some truly
awesome pricing.

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petervandijck
Start talking to them just to get to know them/for them to get to know you.
Investors love talking to companies that don't need money.

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dh
There is no harm in talking to the right people at anytime. It does not mean
you have to raise money right now or that you even find the right partner but
you will learn a lot about the business and yourself along the way. If the
question is should you take money, you are in a much stronger position when
you have traction (however you want to measure that).

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smallegan
I like to think of angels like Nitro in a car...helps you with short term
rapid acceleration (making connections, early funding, a sounding board to
bounce ideas off of, etc..)

EDIT: So my answer is yes, you should start talking to them.

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pajarito
Angel will not make your product fly if it is a heavy one. If you think the
opinion of Angel can make it a better product contact them else focus in your
goal until your product is ready for market.

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epi0Bauqu
Email ha@hackerangels.com. We mainly give advice--if you need any, that is.

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steilpass
So no clear suggestion here: Talk vs. work. Connections vs. overhead.

