Startup Professionals Musings

NOVEMBER 25, 2020

With the advent and growth of crowdfunding over the past few years, many entrepreneurs have predicted the demise of those demanding angel investment groups and venture capital organizations. Have you ever wondered what professional startup investors think about all this? It shouldn’t be that hard to stay ahead of the crowd.

Equity 411

Equity Angel Groups Accredited Investor Due Diligence 411

Up and Running

SEPTEMBER 15, 2014

So before you read these tips, first understand the difference between venture capital and angel investment and then you can add in 5 essentials for angel investment. And keep in mind, as you read that, that venture capital demands everything that angel investors do, and more. Are you still with me?

Software Review 124

Software Review Due Diligence Venture Capital Elevator Pitch 124

NZ Entrepreneur

DECEMBER 10, 2020

The pitch: StockTrim is a SaaS API which uses a machine learning algorithm to look at past stock behaviour and project future demand to avoid the common situations of over-ordering, under-ordering or miscalculating delivery times and quantities. I was then able to say to the rest of the angel groups that the others invested.”.

Technical Review 103

Technical Review Software Review Due Diligence Startup 103

Startup Professionals Musings

AUGUST 6, 2023

Now there are dozens of online equity portals, including WeFunder and Microventures , already geared up to help regular people buy equity in a startup, without qualifying as an accredited investor. Have you ever wondered what professional startup investors think about all this? It shouldn’t be that hard to stay ahead of the crowd.

Angel Groups 201

Angel Groups Accredited Investor Due Diligence Equity 201

Gust

DECEMBER 27, 2011

Due diligence should always be a two-way street. A while back, I published an article on “ Startup Due Diligence Is Not a Mysterious Black Art ,” describing what investors do to validate your startup before they invest. Taking on an investor is like getting married – the relationship has to work at all levels.

Due Diligence 119

Due Diligence Entrepreneur Offshore Angel Groups 119

Startup Professionals Musings

SEPTEMBER 2, 2015

I’m sure you have seen many new ones, and now understand even better the due diligence required to validate the opportunity, and the executions steps required to make it happen. Use that same technical and business expertise that served you well on this startup to find the next opportunity. Ignore the voices of dissent again.

Technical Review 120

Technical Review Leadership Due Diligence Marketing 120

ReadWriteStart

JUNE 1, 2020

In very few specific cases, depending on the nature of the business, the business model might demand a considerable gestation period or extensive research and development. Equity investors. The third source of funding is from equity investors. For mature businesses, there are Private Equity or PE firms. ?

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

JULY 29, 2013

That doesn’t mean you can’t talk in general terms about your idea, and even pitch to investors. Investors don’t need to hear the details anyway, until at least the due diligence phase. As I mentioned earlier, you should never disclose details of a potential patent to anyone without getting a signed and dated NDA.

NDA 230

NDA Non-disclosure Agreement Demand Non-Compete 230

Both Sides of the Table

OCTOBER 12, 2014

This is important for nearly every institutional investor because once you have 25-50 investments being able to “follow” the investments that are working well is critical to making money. New investors sometimes want older investors NOT to participate so that the new investor can take more of the round.

Technical Review 336

Technical Review Later Stage Early Stage LP 336

YoungUpstarts

FEBRUARY 6, 2017

However, being able to say, “I’m at $400,000 on a $500,000 raise, and we’ve got room for one or two more investors,” is a powerful statement to a prospective angel investor since most investors love to be part of an oversubscribed round. Additionally, be specific in your financial numbers.

Venture Capital 100

Venture Capital Term Sheet Technical Review Due Diligence 100

Hippoland

AUGUST 21, 2016

3) Do due diligence on your prospective investors This leads me to my next point - if you are not familiar with a particular investor, it’s important to do due diligence on him/her. So, make sure that your prospective investor doesn’t hurt you.

Technical Review 48

Technical Review Due Diligence Silicon Valley Portfolio 48

Startup Professionals Musings

MAY 20, 2016

With the advent and growth of crowdfunding over the past few years, many entrepreneurs have predicted the demise of those demanding angel investment groups and venture capital organizations. Have you ever wondered what professional startup investors think about all this? It shouldn’t be that hard to stay ahead of the crowd.

Angel Groups 136

Angel Groups Accredited Investor Equity Due Diligence 136

Gust

NOVEMBER 29, 2011

But, before elaborating on crowd funding, let me share some of what I have learned in my thirty years of experience investing in new companies as an angel investor. More than 50% of companies funded by angel investors fail, with most returning nothing to investors.

Securities and Exchange Commission 154

Securities and Exchange Commission Accredited Investor Angel Investor Due Diligence 154

Startup Professionals Musings

MAY 2, 2016

Unfortunately, as a startup advisor and angel investor, I’ve seen too many ventures with great potential get destroyed or set back by legal and other shortcuts that should never have been allowed to happen. Skip any due diligence verification on interested investors. Don’t give away your business.

Intellectual Property 120

Intellectual Property Due Diligence Non-Compete Startup 120

Up and Running

MAY 27, 2014

Is the investor asking for a non-dilution clause (a stipulation that their equity shares never dilute) in your operating agreement? (No No savvy investor will ever ask for this, nor will a savvy investor want to invest in your business if you have any investors who demand this clause.

Angel Investor 119

Angel Investor Dilution Accredited Investor Due Diligence 119

Scalable Startup

APRIL 6, 2015

The frenzy at these higher levels, and the continuous stories of first time entrepreneurs in their early 20s who magically start these amazing companies is creating a demand at the bottom of the funding market, like the pyramid schemes in Southern California in 980 (see below). Look out for this trend, put your wallet away.

Angel Investor 20

Angel Investor Technical Review Southern California Startup 20

David Teten

DECEMBER 3, 2019

However, in private markets, there is more room to optimize across all 11 steps of the investing process: firm management , marketing, fundraising , origination , manage relationships, due diligence, negotiation, monitoring, portfolio acceleration , reporting, and. 6) Due diligence. 3) Raise capital.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Both Sides of the Table

MAY 1, 2014

We have been offering local pick-ups in our storage vans at your apartment in NYC for just under a year and already have an enormous client base – demand has exceeded our supply as we’ve had to onboard more pickup vans & drivers to add pick-up capacity. Full on burger flipping mode.

Technical Review 380

Technical Review Software Review Cofounder CTO Hire 380

Startup Company Lawyer

MARCH 14, 2010

Certain angel investors refuse to do convertible debt deals, but will be okay if there is a price cap. The company is obligated to pay $10K for investors counsel. I suspect that this seems reasonable if there is basically no due diligence due to the early stage of the companies. (By Investor pressure.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Up and Running

MAY 16, 2012

At last week’s Willamette Angel Conference , five finalist companies presented their 10 minute pitches to the audience and investors. The investment fund members had already conducted a six-week due diligence process prior to choosing these finalist, so they were quite familiar with all the details of the businesses.

Due Diligence 73

Due Diligence Business Plan Demand Security 73

www.mint.com

MARCH 9, 2010

If the answer is, “Scaling fast enough for our anticipated demand,” try not to laugh. 2 likes ohno 460 days ago If any of these 10 questions are new to you, you will probably be losing every penny of your “angel investment&#. This is an excellent question to figure out what the major challenges are for the company.

Software Review 68

Software Review Startup Post-Money Valuation Technical Review 68

Startup Professionals Musings

AUGUST 29, 2018

Professional investors normally negotiate board seats and communication protocols to minimize this risk. Crowdfunding bypasses the due diligence process. Investors from the crowd have no opportunity to look at financial, operational, or management details before making a final investment decision.

Equity 180

Equity Due Diligence Angel Groups Liquidity Event 180

Tim Keane

JANUARY 12, 2010

Startups and angels: Along the way to success. By Tim Keane, Angel Investor, Golden Angels Investors, LLC. « Power of Angel Investing in Milwaukee | Main.   Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

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

Up and Running

JUNE 25, 2014

I think that there are lots of options available, though, that are coming up to meet the demand for new businesses. It’s very possible that in your own local community, you could get connected to Angel investors who all work together and put together a small fund and invest half million to a million dollars a year.

Small Business 89

Small Business SBA Finance Bankruptcy 89

Steve Blank

NOVEMBER 5, 2009

& Raising Capital Pitch Perfect 4 ways to get automatically rejected by an angel investor Raising Money Using Customer Development Due Diligence Checklist Term Sheet Archives (from Brad [.] Did the VC’s like your team ? Do they believe you have a big enough vision and market.

Customer Development 262

Customer Development Developer Customer Silicon Valley 262

www.chubbybrain.com

SEPTEMBER 28, 2011

I validated this in my conversations with companies with more market reach than us, that had tried similar products (ppv video platform), but pulled the plug because they didn’t see the demand for it. Check out the Brain’s Guide to Angel Investin g and the Brain’s Guide to Venture Capital. And they’re largely right.

Software Review 79

Software Review Startup Technical Review Vesting 79

blog.expensify.com

APRIL 24, 2012

Otherwise, for those yet-another-facebook-type social web apps, just hire competent programmers and give them salary and perks that normal professionals expect, and not hope that their compulsion covers for your managerial incompetence and angel investor micromanaging idiocy. Fred Bosick. March 26, 2011 at 3:03 pm. [.] It was a choice.

Java 107

Java PHP Software Review Coder 107

www.vccafe.com

MARCH 11, 2013

on demand billing and fraud management. List of Angel/SuperAngel Investors for entrepreneurs. Venture Hacks Angel List â?? raise money with angel investors. Guide to Super Angels -Â Chubby Brain. Due Diligence. Recurring billing without the headaches. Recurly â?? Subscription billing.

Software Review 53

Software Review Technical Review Startup 53