Angels, Entrepreneurs and the Dark Side of Trust

Trust is often seen as the key to successful partnerships with angel investors, many of whom provide ‘hand-holding’ services as well as capital for entrepreneurs. But recently published research suggests it can threaten the long-term prospects of a business. Entrepreneurs are, it seems, sometimes so keen to preserve high levels of trust in their relationships with ‘angels’ that they avoid experimentation — and fail to take the kinds of decisions that secure re-investment.