Avoid Investors Who Don’t Understand Startups

Last week I wrote about the difference between a startup and a new-start business, where I explained that a startup isn’t a business yet, but hopes to be one day when it finds a repeatable and scalable business model. Many founders don’t understand that difference, especially if they are from a big business or business school background. But it’s not just founders, unfortunately a lot of angel investors don’t either. That’s a huge problem because it means expectations are misaligned resulting in tension from the start. I’ve seen this happening to other entrepreneurs, but thankfully avoided it myself; that’s one benefit for having bootstrapped for so long.

http://www.forbes.com/sites/scottallison/2012/04/18/avoid-investors-who-dont-understand-startups/