Venture capitalists create a narrative for founder fit just as they do for market fit. Why is this team doing this? Where are they coming from and where do they want to go? What motivates this team? One place to start this narrative is the origin story of the startup. What was the original idea and how did it come to fruition?

Don’t put yourself in a position where you can be held hostage by angels. They are important, but they are rarely in a position to determine the company’s direction. If your angel group is a small, diffuse list of friends and family, consider setting up a special-purpose limited partnership controlled by one of them as a vehicle for them to invest.