A reflection on “Winning Angels: The 7 Fundamentals of early stage investing” by: David Amis and Howard Stevenson
“Start with the end in mind. ”Stephen R. Covey, The 7 Habits of Highly Effective People
As a winning angel, you may go into each investment opportunity for the same reasons, but with an open mind you will get different results. Regardless of how you end, you should have a plan for that end when you begin the investment.
Recently, I was watching an interview with founder of Carol’s Daughter, Lisa Price. She talked about how some of her supporters were very upset with her when she sold her business years after success. She said it was always the plan to sell. REPEAT. She went into business with the goal of one day selling her business.
That was surprising because most people are invested in their ideas and want to see the success forever. But, you can see success forever with a business you started. It just may not be in the CEO seat.
I did a little digging on Carol’s Daughter and found information I would have never thought to look up had I not read this book and learned about harvesting. Crunchbase.com didn’t have all the information that I would have liked to see, but what I learned was this:
Company Name: Carol’s Daughter
Acquired by L’Oreal: 2014
IPO Status: Private
Funding Rounds: 3
Total Funding Amount: $18M
Funding Status: M&A (Merger and Acquisitions)
# of Lead Investors: 3
# of Investors: 10
Among the investors list is Will Smith and Shawn “Jay Z” Carter.
In other words, all positive. Carol’s Daughter has been fortunate not to have to deal with negative harvesting (Chapter 11 or Chapter 7).