Berkonomics

AUGUST 3, 2023

My experience with early valuations by founders for friends… I’ve arrived at a significant number of companies that were looking for additional growth capital after a “friends and family” round and had to “clean up” the cap table more than a few times over the years.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Both Sides of the Table

SEPTEMBER 15, 2010

This is the third article in a series on what it takes to be a great angel investor (and why this should matter to entrepreneurs). But while I prefer a certain naive optimism in founders I can’t see the logic that this extends to angel investors. Part 1 – Access to Great Deal Flow – is here.

Angel Investor 284

Angel Investor Early Stage Cap Table Deal Flow 284

Both Sides of the Table

JANUARY 21, 2010

They get together with a few buddies, bounce around ideas, build some code (sometimes internally, sometimes through contractors), start talking to potential angel investors and then register their company. Many people start companies arse backwards. This is one of the biggest source of future problems for the company.

Southern California 318

Southern California Silicon Valley IP Stock Options 318

The Equity Kicker

MARCH 21, 2017

As Fred Destin explained in his recent post Why VC’s are obsessed with large outcomes , investors with large funds have to chase unicorns to make their numbers work.

San Francisco 90

San Francisco Cap Table Angel Investor Valuation 90

Both Sides of the Table

SEPTEMBER 14, 2010

This is the third article in a series on what it takes to be a great angel investor (and why this should matter to entrepreneurs). But I prefer a certain naive optimism in founders but I can’t see that this extends to angel investors. Part 1 – Access to Great Deal Flow – is here. Not everybody agreed.

Angel Investor 152

Angel Investor Cap Table Early Stage Deal Flow 152

Business Plan Blog

NOVEMBER 13, 2013

Raising Angel Capital. Individual investors who provide financial funding to startups are called ‘Angel Investors.’ Angel investors may invest individually or as part of an angel group, which are usually local organizations made up of Accredited Investors*. 2) Giving equity in the company.

Finance 93

Finance Accredited Investor Angel Investor Seed Capital 93

www.informationarbitrage.com

FEBRUARY 24, 2010

Selecting value-added angel investors and advisors can also help with the camaraderie issue, as they can provide advice and counsel during the solitary period of hard-core coding and product development. These are not revolutionary suggestions, just not necessarily those acted upon by first-time CTO / entrepreneurs.

CTO Hire 40

CTO Hire Founder Cap Table Vesting 40

BeyondVC

NOVEMBER 17, 2016

Our goal was to be the best first check partner for enterprise founders, bringing the value add of a VC firm while moving with the speed and conviction of an angel investor. We continue to have the courage to be first on your cap table and the conviction to move swiftly to close rounds.

Cap Table 60

Cap Table Cofounder Dividend Institutional Investors 60

Feld Thoughts

JUNE 2, 2015

Or, if you just want the paragraph, it’s: “If this note converts at a price higher than the cap that you have been given you agree that in the conversion of the note into equity you agree to allow your stock to be converted such that you will receive no more than a 1x non-participating liquidation preference plus any agreed interest.”.

Liquidation Preference 70

Liquidation Preference Cap Table Angel Investor Post-Money Valuation 70

This is going to be BIG.

DECEMBER 3, 2020

Less than that and you need something else to bring to the table. For your resume to make you a desirable addition to a cap table, not only does it need to stand out, but people need to know about it. When you can find small, friendly funds, they can open up a lot of opportunities for you as an angel investor.

Portfolio 134

Portfolio Syndicate Syndication Deal Flow 134

Hunter Walker

AUGUST 26, 2022

In the process of investing, we became rather obsessed with helping founders build more diverse and impactful cap tables. We’re also constantly meeting with incredible operators, and in addition to the model we’ve created with Thrive and GC, love pulling them into deals alongside us as angel investors.

IPO 91

IPO Cofounder Early Stage Portfolio 91

Berkonomics

JUNE 8, 2017

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

OCTOBER 28, 2014

Each week, we share our favorite video of successful entrepreneurs, investors or business leaders on a variety of topics. We’ve seen a series of interesting companies in the last five years where we simply won’t bid because the cap table is already destroyed.” Ron Conway (at 25:12). Marc Andreessen (at 26:01).

Cap Table 67

Cap Table Cofounder Silicon Valley Venture Capital 67

Hunter Walker

JANUARY 20, 2015

Instead I want to comment on what a “10x Angel” looks like – the type of individual investor who delivers value to the startup in ways that are notably different than the average funder. One reason Satya and I thought we had Product Market Fit for starting Homebrew was behavior we saw as angel investors.

Cap Table 48

Cap Table Warrant Syndicate Syndication 48

Rob Go

JANUARY 27, 2014

Often early rounds included angel investors, and these usually fell into two categories. These syndicates have a manageable number of people on the cap table, and each person there is known and is there for a reason. The first were people who know the founder really well, and believe in them. But this is slowly changing.

Syndicate 73

Syndicate Syndication Early Stage Cap Table 73

David Teten

DECEMBER 3, 2019

Investors are also mining for leads such sources as: – product crowdfunding sites ( Indiegogo *); – tech communities ( Producthunt ); – angel group platforms ( Gust ); – expert networks (e.g., – angel investor networks ( AngelList , FundersClub , OurCrowd , Republic *, SeedInvest ). .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Berkonomics

JANUARY 20, 2010

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 69

Private Equity Valuation Cap Table Accredited Investor 69

venturehacks.com

SEPTEMBER 22, 2011

As the VentureBeat Editor notes on the site: “Ask the Attorney is a new VentureBeat… read more→ Naval Ravikant : Angel investor, Venture Hacks author. We’re founders (Epinions), investors (Twitter), students (life), and advisors (billions). How to make a cap table. What should I send investors?

Equity 40

Equity Cap Table Valuation RSS 40

www.paulgraham.com

APRIL 28, 2010

If your friends or family happen to be rich, the line blurs betweenthem and angel investors. At Viaweb we got our first $10,000 ofseed money from our friend Julian, but he was sufficiently richthat its hard to say whether he should be classified as a friendor angel. Angel Investors Angels are individual rich people.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

YoungUpstarts

NOVEMBER 17, 2016

As a VC and angel investor, I believe deeply in entrepreneurs. There are inherent challenges in raising smaller amounts from many shareholders rather than leveraging larger checks from fewer experienced, accredited investors. He’s formed multiple venture capital funds, founded angel groups, and is an angel investor.

Equity 100

Equity United Kingdom Cap Table Oklahoma 100

View from Seed

MAY 29, 2019

Today, with one or two core investors, the breadth of support that a founder gets is more limited, but the funds that are leading should be more focused on your success. But taken to the extreme, you would have rounds with only one lead and almost no one else on the cap table.

Syndicate 267

Syndicate Syndication Cofounder Cap Table 267

Feld Thoughts

JULY 14, 2015

The first release is underwhelming, but they iterate aggressively, with feedback and support from some of their angel investors. One of their angel investors, who happens to be a VC firm, decides to invest another $500,000 in the company. and the investors, who put up $1m in a convertible note, get 0.1%.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

venturehacks.com

FEBRUARY 24, 2010

Please see How to pick a co-founder, an excellent post in which angel investor Naval Ravikant opines that two is the optimum number of [.] All our products Pitching Hacks , Cap Table , and Co-founder Interview. Mar 2, 2010 [.] Yes, You Need a Co-Founder — giffconstable.com - Aug 5, 2010 [.] Learn more.

Cofounder 101

Cofounder Founder Technical Cofounder Technical Review 101

Austin Startup

MAY 17, 2017

Advisors often times are angel investors as well. Most angel investors writing small checks are buying the right to a small portion of the Company, and that’s it. This dynamic of committing early to a VC before you’re ready for a Series A is discussed somewhat in The Many Flavors of Seed Investor “Pro-Rata” Rights.

Seed Stage 48

Seed Stage Startup Cap Table Angel Investor 48

Hunter Walker

AUGUST 23, 2023

Specifically I’ve had the chance to spend meaningful time over the years with Michael Mignano as he went from startup CEO to Executive/Angel Investor and now VC Partner at Lightspeed. I can vouch for his genuine optimism Hunter Walk: You got to work with a number of different VCs on your cap table for Anchor.

Founder 88

Founder Angel Investor Cap Table Distribution 88

Scalable Startup

JANUARY 28, 2013

Founders, Co-Founders, next employees, Investors, Etc. One of the top 3 to 5 worries when launching a startup is is “Who gets how much stock upon start or joining? The founders of SmartAsset went through this process and decided to open it up to the world.

Cap Table 22

Cap Table Cofounder Startup Stock 22

This is going to be BIG.

FEBRUARY 25, 2019

It used to be that the only people who could even get into angel rounds were high net worth individuals that could write at least $25,000 checks—so if someone said they were an angel investor, you could assume this was their minimum check size.

Syndicate 102

Syndicate Syndication Angel Investor Cap Table 102