Cooperative Investing

If my success depends on your success, we are cooperating. If my success depends on your failure, we are competing. The Saskatchewan Angel Investor Network, SAINT, which re-launched in Regina this week, is a great example of cooperation in the investing world.

SAINT brings together independent angel investors and connects them with business people that are looking for investment. On each deal, several completely independent investors band together to evalute the opportunity. One investor might be a lawyer, another a business consultant, one an engineer, and another a marketing professional. Each brings unique insights to the process, and increases the wisdom available to everyone in the group. While each investor is responsible for making their own decision, they work together to analyze the business plans.

If enough investors are interested, they create a deal with the entrepreneur. These deals are also cooperative by nature, in that the investors only win if the entrepreneur wins. The investors often take a seat on the board and add their expertise, contacts and advice to help the entrepreneur win.

Cooperation beats competition!