Dear SaaStr: What Was The Best Advice You Ever Got From an Angel Investor

Dear SaaStr,

In the world of start-ups, advice from angel investors can be invaluable. One of the most impactful pieces of guidance came from a mentor who offered a simple yet profound message: "Stop feeling sorry for yourself." This advice was delivered during a particularly challenging time at a struggling start-up. The co-founder had left, leaving only a few months of remaining cash and a dwindling number of customers. The situation seemed dire, and the founder was out of ideas.

The angel investor, recognizing the gravity of the situation, cut through the self-pity. "Enough," he said, "I’ve heard enough." He urged the founder to step away from the office and focus on expanding their customer base and securing larger deals. Reluctantly, the founder took this advice to heart. They managed to close significant partnerships with companies like GE, Dell, and Comcast, demonstrating that even in the face of adversity, there was still potential for growth.

The investor also emphasized the importance of building a strong team. "Go hire some better people, now," he advised. The founder heeded this warning and invested in hiring a top-notch VP of Marketing, which proved to be a game-changer for the company.

Perhaps the most crucial piece of advice came when the investor insisted, "Go find a way to increase your runway. No excuses." This pushed the founder to take drastic measures, such as forgoing their own salary and raising an additional $500,000 at the last possible moment. These efforts extended the company's runway by a full year, providing the necessary time to make crucial adjustments and pivot the strategy.

Looking back, the investor's words were prophetic. The founder learned that even when things seemed bleak, there was always a way to push forward. The key was to stop dwelling on the challenges and instead focus on finding solutions. This mindset not only helped the start-up survive but also accelerated its growth.

The investor's advice was not just about overcoming immediate obstacles. It was a call to action, urging the founder to embrace a growth mindset and relentlessly pursue opportunities. As the founder discovered, even small increases in customer numbers could lead to exponential growth. With each additional customer, the company gained more traction, and this compounding effect became the foundation for eventual success.

In the end, the angel investor's message served as a powerful reminder that self-pity is a luxury start-ups cannot afford. Instead, founders must embrace the challenges they face and relentlessly strive to create value for their customers and their business. The path may be tough, but with the right mindset and determination, even the most insurmountable obstacles can be overcome.

Dear SaaStr, the lessons from this angel investor's advice are timeless. When faced with adversity, remember to stop feeling sorry for yourself and start finding ways to do more. The potential for growth is always there, waiting to be unlocked.