How much value can investors add to a startup beyond writing a check?
(context: Top ranked angel, Gil Penchina believes not much. He says one of the key lessons he has learned about investing is how little control he has over the outcome. Market timing and the team are far more important)
I think we can have pretty significant impact but success really comes down to the company’s team. The key to an investor/entrepreneur relationship is building trust. You want the entrepreneurs to trust you enough to genuinely ask your opinion on matters like hiring and strategic direction. We can also make a big difference on both the size and quality of an acquisition based on how we manage the process of maximizing the exit. In all these ways, an engaged, trusted venture partner can influence the outcome.