Smash Notes

Why Does Dave Morin Tell Angel Investors to Say Yes?

at 38:17

From the episode: Dave Morin insights from Facebook, Path, and 250+ investments

Dave Morin told Jason Calacanis on Angel that an angel has to make yes the default. Saying yes risks a sum you can name, on the order of $25,000 to $100,000. Saying no hides the loss. The company you passed might have become a $100 million outcome, or a billion, and you will never book that number. He called the rule hard. It came up as he described 2008, when growth at his own company had gone flat and even half a car was more than he could afford. That is when yes feels impossible, and when the unknown cost of no is largest. Investors get enough second chances, he said, that complaining is a waste of the job.

"Angel" hosted by Jason Calacanis - Audio · Dave Morin insights from Facebook, Path, and 250+ investments · at 38:17 · ·Transcript

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