Angels vs. Professional Investors

Research suggests that you'd be foolish to accept both angel and professional investment money for your startup. Sounds like bunk to me, but others are eating it up. The paper does have a fair number of controls in it, but the conclusions still seem a bit aggressive to me.

Net summary: Having more investors involved complicates things, and angels and professionals often have trouble coinciding their mutal interests. Fair enough.

My take home: this is more evidence that if you ever have to raise money for anything, be sure that you are getting more than money with it, and that you and your project's needs match your investors interests; try to make sure you bought key help for your next milestones for all that equity in your project. Most likely you'll have improved your chances of success if you do that.

Via [Paul Kedrosky]