Startup Professionals Musings

APRIL 10, 2016

These questions are the key ones in every due diligence effort, always done by accredited investors, but almost never done by key employees and new partners. Ironically, startup investors are normally in less personal jeopardy than early startup employees.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

Startup Professionals Musings

MARCH 16, 2016

After viewing your slide deck, if investors are still interested in your startup, they will ask for a deep-dive meeting to drill in on any hard questions before commencing due diligence. When a startup proclaims that it is cash-flow positive but pays no salary yet to the founders, investors call this Ramen-profitable.

Software Review 120

Software Review Sweat Equity Accredited Investor Angel Investor 120

ReadWriteStart

APRIL 26, 2011

The service is meant to help investors from all over the country - both accredited investors and what the company calls "sophisticated investors" - gain access to deal that they wouldn't ordinarily see. MicroVentures is an online investment service that uses peer-to-peer fundraising.

Software Review 122

Software Review Accredited Investor Due Diligence Burn Rate 122

The Startup Magazine

FEBRUARY 24, 2021

There are multiple types of investors and each one is different. Angel investors. In many cities with a startup scene, there are angel investors. They are high net worth individuals who are also accredited investors. This way they can combine expertise and achieve better due diligence.

Accredited Investor 90

Accredited Investor Angel Investor Initial Public Offering Due Diligence 90

Kodorra

JANUARY 4, 2019

But then, the exchange would perform the necessary due diligence that will protect its existing customers (who passed all KYC/AML process) who will be the targeted investors. Choosing (or being chosen) by an exchange to conduct an IEO is more difficult compared to ICO, let alone the fees that the exchange might charge upfront.

Securities and Exchange Commission 40

Securities and Exchange Commission Technical Review Lock-up Period Accredited Investor 40

David Teten

FEBRUARY 26, 2012

HBSANY members are required to be accredited investors (per SEC regulations) and are expected to agree to the terms of the HBSANY Membership Agreement. Please note that all angels, members of HBS Angels or not, are responsible for their own due diligence. presenting companies.

Technical Review 128

Technical Review New York Accredited Investor IP 128

Business Plan Blog

DECEMBER 12, 2013

Angels need to meet the Securities Exchange Commission’s definition of an accredited investor, which in their case is they need to have a net worth of at least $1 million and make $200,000 a year—or $300,000 a year jointly with a spouse. About 225,000 people have made an angel investment in the last two years.

Angel Groups 51

Angel Groups Angel Investor Software Review Accredited Investor 51

Pascal's View

OCTOBER 11, 2013

While you can package optimism in many different wrappers, in my view it is essential, especially for unsophisticated accredited investors, to understand critical concepts such as equity dilution from follow on rounds.

New York 31

New York Technical Review Angel Investor Finance 31

ithacaVC

JUNE 26, 2019

Now even more investors can access exciting startup company investment opportunities from the convenience of their laptop or smartphone, as Launch NY has announced that is launching the beta version of the Investor Network. The investment will appear as one line item on the company’s capitalization table.

Accredited Investor 40

Accredited Investor Due Diligence Capitalization Table Angel Groups 40

Business Plan Blog

DECEMBER 12, 2013

Angels need to meet the Securities Exchange Commission’s definition of an accredited investor, which in their case is they need to have a net worth of at least $1 million and make $200,000 a year—or $300,000 a year jointly with a spouse. About 225,000 people have made an angel investment in the last two years.

Angel Groups 40

Angel Groups Angel Investor Software Review Accredited Investor 40

Up and Running

NOVEMBER 26, 2018

Investors will look first to a summary , and then a pitch ; but if you get through that screening, they’ll want to see a business plan for the process of due diligence. securities and exchange regulations to individuals meeting some minimum wealth requirements, called “accredited investors” in the legal wording.

SBA 161

SBA Venture Capital Angel Investor Technical Review 161

Berkonomics

AUGUST 3, 2023

Money from these sources is relatively easy to come by, and most often comes with no strings as to oversight by a formal board composed of these investors and management. Professional angels: This is the arena where I work and play.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Gust

NOVEMBER 29, 2011

But, in the US, only wealthy accredited investors * have been allowed by the Securities and Exchange Commission (SEC) to invest in entrepreneurs and their startup companies (without extensive disclosure of the business plan and risks inherent to such new ventures).

Securities and Exchange Commission 154

Securities and Exchange Commission Accredited Investor Angel Investor Due Diligence 154

Startup Professionals Musings

MAY 20, 2016

At least ten online portals are already gearing up to help regular people buy startup equity, without abiding by accredited investor rules. Have you ever wondered what professional startup investors think about all this? As an accredited angel investor, I claim to be one of those professionals, and I’ve talked to many more.

Angel Groups 136

Angel Groups Accredited Investor Equity Due Diligence 136

VC Cafe

JULY 4, 2012

While they provide huge value to the ecosystem and increase the density of network amongst startup and angel investors, they don’t unlock new sources of funding and don’t face the barriers of equity crowdfunding when dealing with a large number of non-accredited investors. Perform due diligence once target raised.

Equity 160

Equity Europe Due Diligence Startup 160

Up and Running

MAY 27, 2014

Is the investor pressuring you to take the money by a certain date and not transparent with you about why? Connections to other accredited investors. Venture Capital and Angel Investors' Specific skill-sets that are missing in your company (e.g., Challenging your ideas and assumptions in a productive manner.

Angel Investor 119

Angel Investor Dilution Accredited Investor Due Diligence 119

Gust

OCTOBER 29, 2014

” and the second is “Are you an Accredited Investor by that country’s standards?” This will be changing next year, however, because of a new law called the JOBS Act of 2012 , which establishes a new, limited type of Crowdfunding for small companies and non-Accredited investors. Once the U.S.

Accredited Investor 157

Accredited Investor Securities and Exchange Commission Technical Review Due Diligence 157

Business Plan Blog

JANUARY 2, 2014

First and foremost, the screening and due diligence needed to decide which startups warrant investment is best suited for the professionals.

Angel Groups 51

Angel Groups Accredited Investor Angel Investor Due Diligence 51

Berkonomics

JUNE 8, 2017

composed of these investors and management. However, most often, these funds are solicited by a well-meaning entrepreneur from investors who are not qualified as accredited investors under the law (currently requiring a proved income of $200,000 a year or $1 million in net worth for an individual investor).

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

Scott Edward Walker

FEBRUARY 1, 2014

Mistake #5 : not doing your due diligence on potential investors (at 38:36). Rule #1 : only sell “securities” to “accredited investors” – why? (i) Crowdfunding exception to “accredited investor” – SEC rules not promulgated yet. Mistake #5: Not Doing Your Due Diligence on Potential Investors.

Software Review 111

Software Review Delaware Accredited Investor Due Diligence 111

Scott Edward Walker

FEBRUARY 1, 2014

i) Rule 506 preempts State law, which means all you have to do is file a Form D and pay a filing fee; and (ii) no disclosure requirement/PPM Possible to sell to “friends and family” (e.g., issues to address include: How have they treated their other portfolio companies? (i)

Software Review 111

Software Review Delaware Accredited Investor Due Diligence 111

Berkonomics

JANUARY 20, 2010

Money from these sources is relatively easy to come by, and most often comes with no strings as to oversight by a formal board composed of these investors and management. Professional angels: This is the arena where I work and play.

Private Equity 69

Private Equity Valuation Cap Table Accredited Investor 69

Gust

OCTOBER 20, 2011

Individual accredited investors in typical angel deals put personal capital at risk for an equity share of growth-oriented, start-up companies. These angel investors generally invest $25,000 to $100,000 in a round totaling $250,000 to $1,000,000. A local network of angels is critical to achieving a diversified portfolio.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

www.paulgraham.com

APRIL 28, 2010

There are three maindisadvantages: you mix together your business and personal life;they will probably not be as well connected as angels or venturefirms; and they may not be accredited investors, which couldcomplicate your life later. The regulatory burden is much lower if a companys shareholdersare all accredited investors.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76