Seed Capital From Angel Investors: Kindra Tatarsky, Director of Operations, Golden Seeds (Part 5)

By guest authors Irina Patterson and Candice Arnold

Irina: What do you think angel investors could do to increase their chances of success?

Kindra: It is obviously a risky investment strategy, so the most important thing is to build a portfolio. You can’t just pick one or two or three companies because there are so many things that can go right and so many things that can go wrong. And perhaps the company that you think looks to be the biggest concern when you first invest might end up being your biggest success and vice versa; the one that you think is a home run might have some unforeseen obstacles and end up going bankrupt. So, it’s critical to build a portfolio.

Really, looking at the entrepreneurs, getting to know the entrepreneurs is a critical component because the businesses might change and evolve over time. Obviously, you want to find a good business that you feel strongly about but the entrepreneur is a key person who you’re going to be partnering with over time.

Irina: What do you think the entrepreneurs could do to improve their chances of success?

Kindra: In terms of getting funded, I think first of all, know your audience. Understand what they invest in, understand what’s going to grab their attention. Be respectful of your audience. Answer questions openly and honestly. Demonstrate integrity. Make sure that your answers are to the point and concise; have good communication skills.

Every angel group is a bit different, so do your research on what the different focuses or specialties or stages are that they look at.

Prior to the pitches themselves, obviously, have a well-thought-out business plan. You know, it’s not just the plan itself, it’s the planning process around the plan. So, what brought you to this point? What research have you done? How well do you understand your market? How well do you understand the opportunity? Who are the competitors that are out there? It’s always funny to hear an entrepreneur say, “Well, there aren’t really any competitors.” That either means that it’s not a good business or the entrepreneur hasn’t done her homework, because there’s always some form of competitor in every viable market, in my opinion.

Irina: What are your daily challenges?

Kindra: I think our daily challenges are resources. You know, having the resources to be able to get the companies through in an expedited manner. So, just as we ask the entrepreneurs to be respectful of our time, in terms of their communication, their process, their presentations, their plans that they put forward, we also like to be respectful of the companies and recognize that they have limited resources. We work very hard at trying to keep to concise time lines, communicating with them each step of the way as to where we’re at so they’re not getting misinformation or waiting around for something that doesn’t happen or being unprepared.

Irina: Thank you, Kindra. Great insights.

This segment is part 5 in the series : Seed Capital From Angel Investors: Kindra Tatarsky, Director of Operations, Golden Seeds
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