By guest authors Irina Patterson and Candice Arnold
Irina: Can angels invest alongside the LLC? Can they invest additional money on top of what the LLC is offering?
Anu: Only members can invest in the LLC. We syndicate with a lot of angel groups, individual angels, and VCs. So, a round may be $1 million, we’re putting in half, another fund is putting in a quarter, and a bunch of individual angels are putting in the remainder to get to $1 million. Members of Sand Hill can only invest in the LLC.
Irina: What can entrepreneurs do to increase their chances of success?
Anu: I think the point is the more money you raise, the better it is because in case something goes wrong, you have more money to survive. So, my advice to all entrepreneurs is raise more money. If you can get it, take it. If you can’t, then you’ve got to figure it out. Most entrepreneurs are trying to take as little money [as possible], which is the reason they’re keeping as much equity. So, I would argue the other way.
Irina: Thank you, Anu. Great insights.