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ProfessorVC: Touched by an Angel

Professor VC

Again, I see nothing wrong with this, although entrepreneurs often prefer convertible debt as it defers the valuation discussion and leaves the Series A price for the venture firm to set. He also said they typically only invest at a $1 million pre-money valuation or less. Labels: angel groups , valuation.

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How to Start a Startup

www.paulgraham.com

Some angels, especially those with technology backgrounds, may be satisfied with a demo and a verbal description of what you plan to do. If you give an investor new shares equal to 5% ofthose already outstanding in return for $100,000, then youve donethe deal at a pre-money valuation of $2 million.

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