I asked a company the other day whether or not they were going to take advantage of a great event here in NYC. Its an opportunity to pitch Sony on a biz dev deal--a no brainer for nearly any company given the scope of Sony's areas of interest. (applications are due this Monday the 31st)
The company said no because their main angel investor didn't think it was a good idea to let an audience see their pitch. He was afraid someone would steal the concept. I asked them how they felt, and they knew that if all it took to replicate their idea was seeing their high level biz dev pitch, they wouldn't have much of a company. Then I asked how much of the company the investor owned. The answer? None. He was in on a convertible note and, if the note converted at the cap, it would be about 10%. They knew it wasn't a controlling share, but it was the bulk of their angel capital and they couldn't have worked on their company without it. They felt an allegiance to him to listen to how he thought the company should be run.
To read the full, original article click on this link: People who don't run your company
