Investor Classifications

I read this Medium post classifying different types of investors before getting on the plane to see my MVP Academy friends. According to the framework, investors are:

  1. Investors: Invest capital in exchange for equity (or convertible debt) of a company.
  2. Passive Investors: Investors + crossing your fingers.
  3. Active Investors: Passive Investors + periodic strategic guidance in the their domain/industry of expertise, networking for recruiting/sales/partnerships.
  4. 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:

  1. Crowdcube, Angel List, FFF
  2. General angels and angels on Angel list
  3. VC firms
  4. 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.