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Answers to the 5 Most Common Angel Investor Questions

Growthink Blog

While this might depict an "angel," it certainly is a far cry from the definition of an "angel investor." Below I define exactly what an "angel investor" is along with answers to the other most common angel investor questions. What is An Angel Investor? That is what they do for a living.

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Convertible Equity, A Better Alternative To Convertible Debt?

techcrunch.com

There has been no shortage of controversy and criticism around the convertible note, a popular investing vehicle that’s used by seed stage and angel investors. As a refresher, a convertible note is a loan that automatically converts into equity upon the closing of a Series A round of financing. → Learn More.

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Should Investors in the Same Round of Financing Ever Get Different Prices?

Both Sides of the Table

If you do an uncapped note it’s bad for the investor. If you do a capped note it’s bad for the entrepreneur. But Paul Graham really did have a point in his “ high resolution fundraising ” post – that there is a problem – particularly in angel financing – with herding cats.

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VC Seed Funding Example: Trada

Feld Thoughts

We decided that we wanted to bring in some experts to help us with the business and together flew around pitching the business to a small handful of strategic angel investors to pull together a small syndicate that became the initial Trada investor base. Recently Google Ventures led the a $5.75m “Series C&# round.

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Startup Capital: Feast or Famine?

Gust

New Company Formation – According to the Kauffman Foundation, entrepreneurs start about 700,000 companies per year in the US. We have no measure of the changes in available capital resources from entrepreneurs and their friends and family, but we have no reason to believe they have changed radically over the past few years.

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The Importance of Robust Angel Ecosystems

VC Adventure

I’ve always felt that a robust angel financing market was important to startup ecosystems and the data on the next two charts really brings that home. While there’s a lot of seed stage investing going on in Colorado and other markets, there are some clear challenges to how many angel investors are approaching the market.

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Who, When, and How Much? A Quick Introduction to Startup Financing

Gust

For a first time entrepreneur trying to figure out the arcane world of startup financing, it can be very confusing to understand the roles that different types of investors play in funding promising companies, as well as the point in a company’s life at which they enter the stage.

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