Etsy’s first investors were two local real estate developers that I had done some carpentry work for, and a restaurateur who I had set up an Internet café for. I had the first $50,000 check before I even launched anything and another $100,000 within six months after the launch. I gained their trust by building things for them. Building up your personal relationships, especially in the beginning, is hugely important. In my experience, in the seed and angel round, people are going to invest in people and products, not the business plan. [Entrepreneurs] focus on the plan first, and they have it backwards in my opinion.
WSJ
