Lucas Carlson founded the startup AppFog which was acquired by CenturyLink in 2013. AppFog has signed up more than 100,000 developers, raised nearly $10M in venture funding and has become an industry leading Platform-as-a-Service.
Below are a few words from Lucas on startup investing which offer a refreshing point of view that values the relationship between investor and entrepreneur.
Investing in startups is a great way to be involved with the startup community and keep a hand in entrepreneurship, but I was once told by an industry veteran that smart angel investors write off their investments the moment they wire their money to the startup. The savviest way to think about investing is to use it to build and deepen relationships with people you want to get to know or stay close to. If you over-burden your relationship by micro-managing your investment and guiding the the founders to maximize your personal ROI, you will likely end up burning your personal relationship instead of growing it. Then in the end, you will likely have nothing to show for it: no money and no relationship.
In summary, treat angel investing as a long-term relationship investment, not as a short-term monetary investment.
Would you like to listen to the two interviews Lucas has done for Breaking Biz?
Interview 1- Passion Does Not Pay The Bills