Investments

Would You Invest $10,000 in a Friend’s Startup? Are You Friends If You Don’t?

6 Mins read

Would You Invest $10,000 in a Friend’s Startup? Are You Friends If You Don’t?

Maia Bittner is an angel investor, and she has a lot of friends who’ve founded startups. Sometimes they ask her if she wants to put money into their companies. Bittner used to feel prickly about it—she didn’t want them to assume she’d write a check just because they’re friends.

At some point, however, she realized that being buddies with someone was a great reason to write them a check. “The fact that they are my friend means there’s something cool and interesting about this person,” says Bittner, who’s founded two companies of her own: Rocksbox, a jewelry rental service, and Pinch, a fintech startup. For someone she considers a good friend, she’ll sometimes invest blindly, without knowing what the company does, because she trusts their judgment. “Investing in my friends is super cool,” she says. “I get to support them. If they do well, I do well. If not, I’m helping them be entrepreneurs.”

relates to Would You Invest $10,000 in a Friend’s Startup? Are You Friends If You Don’t?
Bittner
Photographer: Meron Menghistab for Bloomberg Businessweek

In certain elevated strata of Silicon Valley, Bittner’s no-boundaries attitude has become common. Angel investing, historically the realm of the ultrarich, is now a pastime for the tech set, who often find themselves with extra cash on hand and entrepreneurial friends looking to raise money. Even beyond wealthy people investing their own money directly into startups, small-check investment is more prevalent than ever. According to PitchBook, 449 micro investment funds, which have $50 million or less in assets, were raised in 2021—100 more than in any previous year. These funds tend to invest in younger companies and write smaller checks than larger venture funds.

 

Source: Bloomberg

Related posts
BusinessHeadlineInvestmentsOn The GroundTravel In Style

Uber Takes the Lead in $100M Investment in Fintech Startup Moove, Valuation Soars to $750M

5 Mins read
Uber Takes the Lead in $100M Investment in Fintech Startup Moove, Valuation Soars to $750M Moove, an African mobility fintech that offers…
AutoElectric VehiclesEV MarketHeadlineInvestmentsSMEs

Revolutionizing Ghana's Delivery Sector: The Strategic Investment in Wahu's Electric Solution

3 Mins read
Revolutionizing Ghana’s Delivery Sector: The Strategic Investment in Wahu’s Electric Solution Wahu is a Ghanaian e-mobility company that designs, manufactures, and sells electric…
HeadlineInvestments

Remoteli, Ghanaian Talent Startup, Secures £250,000 Investment from Football Sensation Jeremie Frimpong

2 Mins read
Remoteli, Ghanaian Talent Startup, Secures £250,000 Investment from Football Sensation Jeremie Frimpong Remoteli’s founder, Samuel Brooksworth. Image Source: Remoteli Remoteli, a Ghana-based…

Leave a Reply

Your email address will not be published. Required fields are marked *