- Investors: Invest capital in exchange for equity (or convertible debt) of a company.
- Passive Investors: Investors + crossing your fingers.
- Active Investors: Passive Investors + periodic strategic guidance in the their domain/industry of expertise, networking for recruiting/sales/partnerships.
- Value-add Investors: Active Investors + providing constant leadership / expertise in 1+ domain (tech, recruiting, marketing, enterprise sales, social, etc.) to extend a founding team’s capacity.
In my mind this is how certain investors/investor groups fall under the framework:
- Crowdcube, Angel List, FFF
- General angels and angels on Angel list
- VC firms
- a16z, Point9 (SaaS), Betaworks (Media), Techstars, 500
There's a role to play for all these investors in a startup ecosystem. That should be celebrated and working relationships should be encouraged.