Tagged: investor

Could a company founder be equal to an investor?

Company founders are a startup’s initial investors. As the company requires capital for growth, the founders issue new equity in return for investment proceeds. Typically, investors will require specific rights as a part of the transaction. These rights are negotiated between the parties on an arms length basis. The initial step in the process is the development of a Term Sheet. The following blog on The Term Sheets will provide additional information:

The Holy Grail of Entrepreneurship: The Term Sheet, Part 1

Is it easier to succeed as an entrepreneur or an investor?

It would be my opinion that it would less difficult to succeed as an investor. My conclusion is based on the ability for the investor to diversify, thereby reducing their risk.

However, the ultimate answer depends largely on what you start with and how you define success. For example, if you have funds which can be invested, becoming a successful investor is significantly easier then if you do not and must spend years developing an investment foundation. Under this scenario, it may be less difficult to succeed as an entrepreneur.

It should be noted that even with the appropriate knowledge base and experience, obtaining success at either is generally difficult.