A Costly Oops; Do Not Make This Mistake
A few OP's ago, I wrote about Angel Investing. I thought I'd share a recent story that, hopefully, many of you can learn from, as I know I will.
I had the opportunity to write an angel check to a friend and industry colleague's business which I believed in. I'll leave it nameless for the sake of anonymity. I filled out the paperwork, signed the DocuSign, and all was good.
Recently, I heard the company sold via social media and another venture fund who had invested in the business. Oddly, I never signed any paperwork upon the change in control and never heard from the CEO about the exit.
I pinged the CEO with my concern. He spent a few days pondering and mentioned that the lawyers searched everything and that I was not on the cap table. We did a bit of digging, and it turns out that while I signed the documents, I never sent the wire transfer of the investment dollars way back upon investment.
That "oops" is on me, 100%. I remember the approximate time I "made" this investment, and I know I was swamped, and this fell through the cracks. I do not know why the business did not reach out to me at the time but this is my mistake as an angel investor.
So the moral of the story is to get all of your paperwork and wires completed and double-check to make sure the company has received everything. Sounds simple, I know. But I did not do it.
The investment would have returned nicely, and I missed out.