In the end, why do we do what we do? Why do investors invest in certain companies? Why do they pick those companies, those people, those entrepreneurs? It’s all for the endgame. I have seen over the years is that the endgame or the harvesting results for an investor can be many different reasons. It’s all about what we want out of the investment. When we look at all the other chapters that we looked at in this winning angels book, it all comes back to this harvesting. What did you want out of the investment? When you look at it in that way, the harvesting is why you do everything before this. Harvesting is a driving force behind why investors or why anybody does anything. I like to look at business, finance, or accounting in the most real easy way possible, and for me, this is how I look at why we do what we do or why investors do what they do. Whether the result is positive or negative, it’s the passion that goes into this type of work that’s unique. In my little tiny world that I live in most of the time, you have investors who genuinely believe in a company or honestly believe in a person. Their vision in their business and putting that team together, seeing how that works, and appreciating the inner workings of that team is remarkable. I think that’s something to be awe over. Taking all these factors putting them together, you make a well-rounded circle that always brings it all back, and that is what makes its fundamentals, and that’s what makes all those things not only in finance but in in in real life.
Jae:
You’ve done a great job summarizing this section of the book. Harvesting is the end game and one of the fundamental reasons angel investors do what they do. An entrepreneur must have a harvesting strategy to attract these types of investors. It may be one of the first questions you’re asked – what is your vision of how this will end? Investor: How and when will I get my money? I found it interesting that the authors spoke about how, as an investor, one should look for an entrepreneur who has a harvesting plan and is working toward it. It may not be wise to invest with someone who wants to pass the business down to their kid vs. making the most of a harvesting event.
Adam
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