Silent or Active Investor?!

silent partner versus active partner in iran tech sector

Silent or Active Investor?!

November 13, 2017 Koorosh 0

Is a silent investor better than an active one for my startup?
If you have options, go for an active partner, unless you are opening a shoe store (still I would go for active partner).
The startup world is so dynamic and competitive. Any business idea, App feature or competitive advantage that you have built so far has a short lifetime. You need to be twice as smart, and twice as fast than rivals to succeed. If you seek capital for growth, why not seeking smart capital?! After all, an active partner is an extra brain/muscle at a discounted rate to your business.
In any sector in emerging markets tech startup, there is at least half a dozen competitor working hard to secure the majority of the market share.
Notably, only one of the investor decks I have received from emerging markets asked for “smart money”. Actually, the team clearly outlined what they needed to see in their investor partner beside money:

  • Help with legal, tax, licensing from governmental bodies
  • Help with business development (B2B) through alliance network and partnership

 

If need funding, seek “smart money”.
 

 

 

 

Koorosh started up his first venture in 1999, an online flower shop. He is an angel investor and a startup mentor in London. Koorosh helps founders build the A-Team, refine their business model and excel in their sector.

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