Thus when an investor declines your funding request, you need to curb your anger and understand the real reason for this outcome. Some investors say half the ideas pitched to them don’t have any plan at all, even though some have great potential. Investors bet on the team, more than the business plan. None of these get funded. MORE >>

A quick protocol note for entrepreneurs raising money from angel investors:   asking for referrals from one angel to another can be tricky. If you ask angel investor A for a referral to investor B, the first question B is going to ask of A is:  ”are you investing?” MORE >>

All prominent and successful investors. It can be an uncomfortable conversation to have with investors, and it can turn into a bit of a stand-off, where no one wants to be the first one to name a price. When you raise the next round, the initial investors convert their debt into equity, but typically at a discount. MORE >>

A few angel investors have slipped or fallen from their lofty perch, so entrepreneurs must take great care to validate the character and reputation of every prospective investor. In fact, most angels are pure, but there are some exceptions that may cost you more than an investment: Shark angels. Litigious angels. MORE >>

If you follow this blog, you know that I think convertible debt is a good structure for a startup’s angel round. The main feature of the convertible note is that the debt investment made by the angel investor will typically later convert into equity. As a sweetener to the angel investor (i.e., per share. MORE >>