Founders , especially first time entrepreneurs, can find negotiations with angel investors and early stage ventures challenging.So, founders need to do their homework and be prepared for what will come up during discussions. He narrates that a potential angel investor wanted his startup to pay for the cost of due diligence (including travel and stay). Plus they bring diverse expertise to the table, which is a value add for any startup,” he adds.Anjana Vivek, founder director of VentureBean Consulting, says founders should choose their first investors wisely. “Investors are not out to cheat gullible founders, but they do have the money power, knowledge and experience. Angel investors are more flexible whereas venture capital firms tend to stick to standard clauses.“In early stage companies, investors usually ask for a personal indemnity from the founders.

Source: Economic Times August 19, 2017 22:45 UTC