Gust

OCTOBER 17, 2011

Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received. Due diligence and paperwork take time, and can change everything. These “IV drip” financings may reduce risk for investors, but put more pressure on founders. Anti-dilution protection.

Term Sheet 158

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 158

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

Gust

OCTOBER 18, 2011

This is the first of a six part series on different methods used by angel investors to arrive at pre-money startup valuations. Below is a brief description of each of the most popular methods.

Valuation 174

Valuation Pre-Money Valuation Southern California Post-Money Valuation 174

Gust

JANUARY 15, 2013

It’s not that much about a rocky recent past; it’s more about money being too easy in the recent past, and now, as a natural result, things get tighter because “easy” money doesn’t always mean enough of the due diligence and thought to make good deals. This is what I hear from my own sources.

Due Diligence 119

Due Diligence Startup Angel Investor Early Stage 119

Gust

OCTOBER 29, 2014

That’s why one of the best options for you today is to join a local angel investor group, where you will work collegially with 25-250 other investors to hear pitches from companies, do your due diligence homework, and then—if you are interested—pool your money with the others to make meaningful investments.

Accredited Investor 157

Accredited Investor Securities and Exchange Commission Technical Review Due Diligence 157

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

Gust

DECEMBER 27, 2012

These range from outbound materials, such as pitch emails and funding applications, to presentations of your venture in different forms for different purposes, to detailed back-up information that you will be asked to supply during due diligence. Your goal in all this is to try to find a lead investor.

Software Review 164

Software Review Term Sheet Technical Review Angel Investor 164

Gust

JANUARY 5, 2012

The assumption has been that companies with 500 investors are quasi-public anyway, and for disclosure and other reasons should be forced to go public when the shareholder number approaches this limit. Securities Exchange Act of 1934, section 12(g), generally limits a privately held company to fewer than 500 shareholders.

SEC 131

SEC Angel Groups Technical Review Private Equity 131

Gust

DECEMBER 7, 2011

There seem to be two motivations behind the current buoyant enthusiasm in Congress over crowd funding for entrepreneurs: 1) the democratization of funding for startup companies (no longer requiring such investors be wealthy) and 2) the job creation that is expected to result from creating more startup ventures.

.Net 98

.Net Revenue Networking Startup 98