Sideways Startups: An Investor’s Dilemma
Editor’s Note: For a great tip on unloading private stock, read this post about how you can donate it. One-half of angel-funded companies fail, which is why a winning Investment Strategy for Angels...
View Article2012 Valuation Survey of Angel Groups
This summer I conducted our third annual survey of the pre-money valuation of pre-revenue companies recently funded by angel groups in North America. Access to our 2010 and 2011 surveys can be found...
View ArticleRaising Your Hand as Due Diligence Lead for Angel Groups
Through Rob Wiltbank’s ground-breaking study in 2007, angels in groups learned that collective due diligence on new deals really pays off. The 538 angels included in this study enjoyed 2.6X returns...
View ArticleDue Diligence Is A Two-Way Street
Investors regularly confuse entrepreneurs with their various approaches to validating deals prior to investment (a process called “due diligence”). A few seed stage investors (angels, super angels or...
View ArticleConvertible Debt is Bad For Angels
A couple of years ago, Paul Graham (Y Combinator) tweeted “Convertible notes have won. Every investment so far in this YC batch (and there have been a lot) has been done on a convertible note.” The...
View ArticleUS Angel Groups vs. European Business Angel Networks (BANs)
There seems to be a subtle but significant operational difference between many European BANs and US angel networks. This is an attempt to describe those differences. In general, BANs seem to have two...
View ArticleAngel Group Syndication of Series A Rounds
US angel investors have been a robust source of seed stage capital for years. More recently, we have experienced significant growth in the number of funded seed stage deals, due to the emergence of...
View ArticleUS Crowdfunding in 2014
Crowdfunding is the practice of raising money for a project or venture from a large number of people utilizing an Internet website or platform. Funding from each individual can be quite small, $10 or...
View ArticleWhy Does Startup Pricing Vary by Location?
Entrepreneurs seem genuinely surprised to find that investors in Peoria or Little Rock are not willing to invest in startup companies at Silicon Valley prices. After all, they just read in TechCrunch...
View ArticleAddressing the Dreaded Lifestyle Outcome
Three outcomes dominate exits of angel-funded companies: Dead bugs – Startups that go out of business, returning less-than-invested capital to angels (usually zero). Positive exits – Companies that...
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