Give Like An Angel Investor, Not A Venture Capitalist

Photo by Kim Seng

Photo by Kim Seng

Shark Tank Reminded Me

Have you ever seen the TV show “Shark Tank?”

If you aren’t familiar with the show, here’s an excellent description from Wikipedia:

The show features a panel of potential investors, called “sharks”, who consider offers from aspiring entrepreneurs seeking investments for their business or product. The entrepreneur can make a deal on the show if a panel member is interested. However, if all of the panel members opt out, the entrepreneur leaves empty handed. The show is said to portray “the drama of pitch meetings and the interaction between the entrepreneurs and tycoons.” A one hour pitch by a contestant is edited down to “a dramatic 10 minute segment”. The show is said to personalize “the desperation and pain experienced by victims of a broken down economy.”

I was watching the show several weeks ago, and I was reminded of the various types of investors. In the world of small business start-up investing, there are essentially two types: venture capitalists and angel investors.

Let’s look a little more closely at these two types of investors.

Venture Capitalists And Angel Investors

There are a couple of key differences between these two types of investors.

Venture capitalists are mostly concerned with making money. They typically invest a lot of money and they are hoping for a substantial return on their investment. For the venture capitalist, it’s all about the money – give a lot and make a lot!

Angel investors, however, handle their investing a little differently.

Yes, just like venture capitalists, they invest a lot of money and are interested in a return on that investment. But, their primary interests are in the people who started the company as well as the success of the business in which they’re investing.

They really like the person who started the business and want this person to be successful. They also really like the business model that this entrepreneur has created and want the business itself to be successful.

You see, for an angel investor, it’s not all about the money. The financial return on investment process is almost like a bonus to them.

Giving Like An Angel Investor

In Matthew 6:31-33, Jesus told His followers,

So do not worry, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ For the pagans run after all these things, and your heavenly Father knows that you need them. But seek first his kingdom and his righteousness, and all these things will be given to you as well.

As believers, I think it’s way too easy to fall into a “give to get” mentality, much like the venture capitalist. Yes, many times God does richly bless those who give faithfully and abundantly, but this shouldn’t be our primary concern.

I believe our motive to give should be like that of an angel investor.

First, we have a unique relationship with God the Father, Son, and Holy Spirit, and we should love the Lord with all our heart, soul, mind, and strength. This is the “people” part of angel investing.

Second, as children of God, we should have a deep personal interest and desire for the Kingdom of God to be successful. This is the “business” part of angel investing.

One way we can demonstrate this love for God and desire for Kingdom success is by giving back to our local church a portion of what He has given to us to manage.

And, the bonus for us as believers is that God promises to take care of our needs when we put Him and His Kingdom as our number one priority.

See my Giving Talk Video below where I addressed this same issue:

Questions: Have you ever thought about giving in terms of small business investing? How have you given in the past, like a venture capitalists or angel investor? Do you give because you are looking for a financial blessing, or because you love God and want His Kingdom to succeed?

This entry was posted in Generosity and tagged , , , , by Larry Jones. Bookmark the permalink.

About Larry Jones

Larry Jones is the Generosity Pastor at First Baptist Raytown in Kansas City, Missouri. He blogs regularly on the topic of extraordinary stewardship with maximum Kingdom impact at GenerosityPastor.com. He is the author of BEYOND DAVE AND FINANCIAL PEACE: ACCELERATING PAST AVERAGE WITH YOUR MONEY PLAN available on Amazon Kindle.

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