The Venture Edge

 I want to follow up Peter's great post about angel investors with my two cents from the perspective of an angel investor.  In addition to all the great advice in that post, it's important to note that angels are generally bypassing companies that don't have customers yet.  They might get involved to mentor the team to prepare them for money, but they won't risk their money in this economy until the business is revenue generating.  

I hear too many people complaining that it's tough to make money with the economy in a deep slump.  Well, some very ingenious people. with what could only be described as wacko ideas, have managed to make money, in some cases A LOT of money.  I guess it's true that there's a sucker born every minute, because whatever you want to sell, there does seem to be someone in the world crazy enough to buy it.  Take a look at some unlikely businesses that have made money for the people who founded them.  Then ask yourself---why didn't I think of that?

We all talk about friends and family money as an important source of startup capital, but before you grab that cash from mom and dad, you might want to consider why it may not be a good idea.  Here are the top five reasons why you shouldn't take money from relatives.

1. My parents believe in me and want to do this.  Of course, they believe in you - what they believe is that you're a good person so you would do nothing less than take their small investment and turn it into a fortune that will take care of them for the rest of their lives, right?  Remember, to your parents you're always a kid--even if you're 45!  So, if you have their money, they're going to watch it and you like a hawk.  That sounds like fun, doesn't it?