I recently talked with some nice retired business people about startups. They gave me some great help but one thing that they said stuck out and I wanted to confirm or deny it.
I was told that the various forms of venture financing expect you to place down 20% like you would on a house mortgage. My understanding is while this may happen due to "your uncle investing", or while it may happen if say you are a serial investor, etc. And while having such a financial commitment to the company yourself may make your venture enticing to venture capital, the way I have understood it is that this is not the norm.
Generally if say you raise 500k from an angel they expect you to invest nothing save for the work and idea. Can anyone with more experience confirm or deny this? I think it is just they these people were use to working more with the standard small business restaurant/etc where you get your financing in the form of a loan from the bank rather than a high tech but I wanted to make sure I am correct.