0-1 Series

If you missed it, a couple weeks ago I kicked off a series on all the firsts of Habits. Consider things like our first sale, how I found my co-founder, and today I’m happy to dive into our first investor.

Want to meet 1:1?

If you aren’t aware, I reserve a few hours every weekend to meet 1-on-1 with Habits users, fellow founders, social media followers and (ofc) blog subscribers.

As you can imagine, I get these requests a lot, and to stay organized I created the application below.

(Those who download the app, rate it 5 stars, and create a profile are typically the first to receive a response…just being honest)

Also, did you know I’m available via text? You can reach me at ‪(812) 805-0099‬, but don’t you dare call me. It’s 2025, just text.

Angel Investors

Love ‘em or hate ‘em, angel investors are a massive component to the startup ecosystem. You’ve probably heard the term before - but as a refresher - these are wealthy individuals who write $5k, $25k, $100k, or even upwards of $500k checks to startups.

But here is the brutal part…it’s the wild west. They have their own niches, passions, expertise, check sizes, personalities, requirements and timelines.

So I’m going to share the good, the bad, the ugly and a few funny stories.

Getting Started

Right when Veera and I went full-time, we had recruited 7ish angels, began to organize paperwork, and anticipated a raise of $300k.

This was in 1Q22. Know what happened?

Market crashed, three banks failed, thousands of startups dissolved into thin air, VCs stopped making investments, and what (historically) was the most lucrative time to be a startup, quickly become the worst.

So…the round blew up in our face.

One of those angels stuck with us, but didn’t write their $25k check until 9 months later (And I’ll share the backstory at the end).

Life comes at you fast in the startup world.

Personalities

Alright, this isn’t a perfect list, but I tried to best categorize the different type of angels that one might come across.

Shop Talkers

These people likely make $5k - $25k investments from time to time, but they LOVE talking about it. More specifically, having multiple meetings with you, breadcrumbing you along, but really just wanna talk shop.

Wannabes

These people don’t write checks. Ever. But they really wish they could. It’s not because they don’t have the money, these people are just bored, want a feeling of purpose, likely are retired, and want an excuse to dump their “wisdom.”

Professionals

Experienced angel investors cut through the bullsh*t. They will listen to a 30min pitch or look at your deck, and will wire the money immediately. These people know what’s up.

Consultants

I hate these people. They’re the worst. Likely worked at a few startups and maybe a VC fund. Oftentimes they ask for a % cut of the money you raise, make empty promises of sending your deck to their “network,” and even worse, ask for an upfront fee for their “fundraising coaching.”

Kijmnngs & Queens

Woof. I hate to admit it, but sometimes angels just want to hear you make the ask. You gotta bend the knee and the wire will come from their family office instantaneously.

Evangelists

These are angels who are picky, but if they choose to invest in your company they will move heaven and earth to make sure everybody knows about it. These people are highly selective, but are great to have in your corner. This begins the backstory of our first angel investor.

Our First Angel Check

There were about 250 of us selected to join the 2017 JPM analyst program. And I was an off cycle hire, meaning I was not an intern, and only got in because someone dropped out.

This matters because I got the job in June and a few weeks later shipped out to NYC. On day 2 of training, a so called “legend” of JPM history came through. His name was Fabrice, and was recently appointed the Vice Chairman title, a huge honor to say the least.

On that day, he said “if you ever want to meet 1:1 just reach out.” And contrary to what you might think, very few ever took him up on it, but you bet your a** I was one of them. We met every 6 months until he retired.

And he was my first call after I left the bank. I told him I had this idea and I wanted his support. We met monthly for about two years, and he challenged, questioned, argued, and forced me to get my sh*t together with every aspect of Habits…and he still does to this day. We got his check in 4Q23. He’s a board advisor, mentor, and has been a massive catalyst.

You shouldn’t need to look far to get your first investor. Whether it’s family, friends, mentors, or colleagues, don’t underestimate the value someone can bring beyond their check.

Lessons learned

These may or may not help, but hopefully I’ve made mistakes so you don’t have to.

• It’s a numbers game; don’t chase or beg.

• Nobody wants to be the first investor, but once that first check clears all the rest will follow.

• Take any meeting you can get, at a minimum you’ll get good practice and feedback.

• Do whatever you can to showcase some sort of ROI, that could be revenue, LOIs, user engagement, an MVP, literally anything that enables an investor to understand how you measure success.

• Just answer their questions, don’t word vomit (I do this allllll the time).

• Don’t sell them on your business today, sell them on what you will be and use your current traction as evidence.

• Don’t be afraid to ask customers to invest, it speaks volume to your product/service and the problem you’re solving.

Fundraising is both thrilling and stressful, but that’s why we often to describe startups as a journey. Thanks for reading, if there are any specific topics you’d like to hear don’t be afraid to shoot me an email ([email protected]).

What’s Coming Next?

Next week I’ll spend some time on our first employees. How we sourced, evaluated, and got them bought in to our mission. Needless to say, they’re the lifeblood of this organization.

Sharing Is Caring

Do me a favor, if you enjoy this, share it with a friend!

^{Find Your Financial Advisor}

If you’re somebody on the sidelines or are not sure if a financial advisor makes sense for you or your family, just shoot me an email at [email protected].

Or… visit our website to learn how we’ve made it easy for you to figure out on your own.