Progression from Investors to Entrepreneurs

The CAUTIOUS BACKER venturing type is more commonly referred to as an “Angel” Investor (usually private) in the traditional culture and lore of entrepreneurship. As a CAUTIOUS BACKER or ANGEL, you generally know of the existence of the “entrepreneurial success script” (the pattern for achieving success in a new business venture). And you likely have the resources (including both money and/or time available in your career) to become involved in venture capital, private equity, and investing in start up companies. Often you may pursue a new venture on a whim, a hunch, or a guess that it “just might fly”.

You are conservative in nature, but what you have (the presence of resources, and general knowledge of specific activities in the venture capital (VC) world, combined with your belief in the value of an “educated guess”) makes you a good investor.

CAUTIOUS BACKERS or ANGELS don’t ask too many questions in the early stages of a new venture (a time where there are few answers which aren’t “fluff”). So you really are of high value to a venture capital firm, an entrepreneur, or any start up company.

What You Should Do

As a CAUTIOUS BACKER or ANGEL, you are invaluable in a new business opportunity as an investor and an advisor to the entrepreneur team or a start up company. If you desire to venture yourself, you already have many of the start up skills necessary. You have a general knowledge of the “entrepreneurial success script”, and most importantly you have the ability to undertake new venture activity. Your natural reluctance, however, should drive you toward acquiring better information to help you to optimize your “educated guessing”. And over time, CAUTIOUS BACKERS may eventually become the “INSTITUTIONAL EXPERT” entrepreneurial profile type. If you choose to stay involved in venturing, your presence within the venture capital and start up community should always be welcome.

SOURCES: Dr. Ronald K. Mitchell, CPA, Ph.D and Howard Mitchell