Startup Professionals Musings

DECEMBER 22, 2017

In my activities as an angel investor, and my work with new ventures seeking investment, I find the “due diligence” stage to be fraught with the most risk. Usually this stage only really starts after an investor has expressed serious interest, or already informally agreed to invest.

Due Diligence 148

Due Diligence Bankruptcy Angel Investor Stock 148

The Startup Magazine

AUGUST 11, 2023

At the pre-seed stage, when the creator has a concept, the founder’s background, educational qualifications, domain experience, previous ventures, market size, and the complimentary talents brought by the cofounders are some of the most critical variables to consider before investing in a startup.

Seed Stage 125

Seed Stage Technical Review Early Stage Due Diligence 125

Startup Professionals Musings

SEPTEMBER 25, 2022

The investors I know are quick to do some real due diligence. If you are presenting to a group of angel investors, assume business attire or match the norm of members. But be cautious about dropping names of people who may not really know you, or whose recollection of you may not be so positive.

Due Diligence 321

Due Diligence Founder Angel Investor Affiliate 321

Startup Professionals Musings

JULY 16, 2017

As a long-time business advisor and angel investor, I’m a believer that “two heads are better than one” in building a new business. In fact, I would broaden the definition of partner from co-founder to “business partner.” Thus you should do the same or more due diligence on educational background, previous work, and references.

Partner 140

Partner Software Review CTO Hire Cofounder 140

The Startup Magazine

NOVEMBER 28, 2018

The event presenter, FUND, is a national connector of entrepreneurs, VCs, angel investors, and industry experts with a focus on deal flow and making connections. The FUND Conference brings together over 100 startups to present their early-stage products and pitches in front of hundreds of investors and industry leaders.

Technical Review 153

Technical Review Software Review Illinois Due Diligence 153

Startup Professionals Musings

DECEMBER 11, 2022

After many years of working with angel investors seriously trying to find new ventures worthy of their hard-earned money, I find their frustration often exceeds that of entrepreneurs sincerely looking for financial help. Investors invest in people, often more so than in the product. Surprises during due diligence.

Due Diligence 271

Due Diligence Intellectual Property Entrepreneur Preferred Stock 271

Startup Professionals Musings

MARCH 15, 2023

As an advisor to entrepreneurs and active angel investor, I often get questions about the realism of the Shark Tank TV series, compared to professional investor negotiations. The simple answer is that with all the staging of TV lights and billionaire investors, it’s nothing like Silicon Valley.

Entrepreneur 279

Entrepreneur Due Diligence Angel Investor Silicon Valley 279

YoungUpstarts

OCTOBER 24, 2013

One of the challenges for investing in startups has always been the lack of an established way for founders and investors to actually measure and decide on the valuation of the startup concerned. “If you are an angel investor and a venture is seeking capital from you, insist on getting its Worthworm report.

Pre-Money Valuation 150

Pre-Money Valuation Web Technical Review Angel Investor 150

Austin Startup

JANUARY 3, 2019

Feedback to investors about what helps and doesn’t help founders when fundraising. I originally asked this question to several founders with the intent of addressing angel investors but I’ve found it doesn’t exclude other institutional investors either. It’s a better use of time for everyone.”

Founder 48

Founder Angel Investor Technical Review Due Diligence 48

View from Seed

FEBRUARY 10, 2015

We’re excited and feel incredibly lucky to have them back on board: Niraj Shah and Steven Conine – Co-founders of Wayfair. Brian Shin – Founder/CEO of Visible Measures. Mike Baker – CEO of DataXu. But we also believe in the “ keiretsu ” principle here at NextView. But … Stay Tuned.

Software Review 120

Software Review Technical Review Entrepreneur Due Diligence 120

Startup Professionals Musings

NOVEMBER 4, 2011

Every new startup I know dreams of being funded by an angel investor. are eliminated during due diligence. Over the past 10 years, I have had the opportunity to see how the process works, several times from the startup side, and more recently from the angel perspective (as a member of an angel group selection committee).

Intellectual Property 249

Intellectual Property Angel Investor Technical Review Elevator Pitch 249

Startup Professionals Musings

SEPTEMBER 23, 2010

Every new startup I know dreams of being funded by an angel investor. are eliminated during due diligence. Over the past 10 years, I have had the opportunity to see how the process works, several times from the startup side, and more recently from the angel perspective (as a member of an angel group selection committee).

Angel Investor 224

Angel Investor Intellectual Property Technical Review Elevator Pitch 224

Agile VC

FEBRUARY 10, 2015

We’re excited and feel incredibly lucky to have them back on board: Niraj Shah & Steve Conine – Co-founders of Wayfair. Mike Baker – Co-Founder/CEO of DataXu. Brian Shin – Founder/CEO of Visible Measures. But we also believe in the ​”​keiretsu​”​ principle here at NextView.

Software Review 113

Software Review Technical Review Entrepreneur Cofounder 113

Startup Professionals Musings

MARCH 14, 2020

After many years of working with angel investors seriously trying to find new ventures worthy of their hard-earned money, I find their frustration often exceeds that of entrepreneurs sincerely looking for financial help. Investors invest in people, often more so than in the product. Surprises during due diligence.

Due Diligence 308

Due Diligence Intellectual Property Preferred Stock Seed Stage 308

Up and Running

JULY 2, 2014

We developed a kick-ass investor pitch and we started pitching it to family, friends, angel investors, and even venture capitalists for feedback. We soon got interest from an angel investor, and he wanted to invest $300,000 in our startup. We gladly handed it over to him as part of the due diligence process.

Technical Review 118

Technical Review Angel Investor Due Diligence Dilution 118

Startup Professionals Musings

MARCH 16, 2016

Super-angel investors (micro-VCs). These terms refer to a class of professional investors who invest their own money, like angels, but have the larger resources and scope of venture capitalists with other people’s money. A seed round is intended to be followed by a bigger Series A round. Sweat equity. Ramen-profitable.

Software Review 120

Software Review Sweat Equity Accredited Investor Angel Investor 120

NZ Entrepreneur

DECEMBER 10, 2020

The snowball effect meant one person’s confidence inspired the next which Sutton says reduced the due diligence workload for him. He found many private investors were interested in him as much as StockTrim. “It That’s where the founder thing comes in, whereas the Angels are more focused on growth projections and risk.”.

Technical Review 103

Technical Review Software Review Due Diligence Startup 103

Agile VC

FEBRUARY 10, 2015

We’re excited and feel incredibly lucky to have them back on board: Niraj Shah & Steve Conine – Co-founders of Wayfair. Mike Baker – Co-Founder/CEO of DataXu. Brian Shin – Founder/CEO of Visible Measures. advice and mentorship to founders in the NextView portfolio. But we also believe in the ?”?keiretsu?”?

Software Review 100

Software Review Technical Review Entrepreneur Cofounder 100

The Equity Kicker

SEPTEMBER 24, 2014

We see this all the time at Forward Partners where we invest right from the idea stage and most of the companies get a first version of their product live for less than £30k (that generally includes founder salaries and time spent doing customer research).

Early Stage 119

Early Stage Development Team Review Technical Review Software Review 119

Startup Professionals Musings

JUNE 14, 2020

As an advisor to entrepreneurs and active angel investor, I often get questions about the realism of the Shark Tank TV series, compared to professional investor negotiations. The simple answer is that with all the staging of TV lights and billionaire investors, it’s nothing like Silicon Valley.

Due Diligence 317

Due Diligence Angel Investor Silicon Valley Green 317

Startup Professionals Musings

MAY 27, 2016

There is an old saying in the startup investor community, “Smart investors invest in the team, not the idea.” As an angel investor, I’ve learned to believe in this approach, since I have seen great ideas go astray, due to poor execution and I have seen apparently marginal ideas make millions, managed by a savvy entrepreneur.

Technical Review 134

Technical Review Intellectual Property Due Diligence Angel Investor 134

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

This is going to be BIG.

NOVEMBER 22, 2013

In a seed or friends and family round, tough questions, in the eyes of many founders, signal an investor that will either a) never get to the writing a check part or b) be such a pain in the ass afterwards that it might not be worth taking their money. Tough questions are a godsend. Running a startup is going to be difficult.

Technical Review 118

Technical Review Due Diligence Angel Investor Venture Capital 118

Up and Running

NOVEMBER 26, 2018

Investors will look first to a summary , and then a pitch ; but if you get through that screening, they’ll want to see a business plan for the process of due diligence. Although angel investment is a lot like venture capital (and is often confused with it), there are important distinctions. Commercial lenders.

SBA 161

SBA Venture Capital Angel Investor Technical Review 161

Up and Running

JULY 6, 2016

I’ll join in the due diligence for my angel group, test for myself, and develop my informed opinion. The detailed look at the technology comes during due diligence, not in the plan or during the pitch. Even in the case of a show-off business plan for angel investors, keep to the business side of it.

Technical Review 72

Technical Review Software Review Business Plan Development Team Review 72

ReadWriteStart

JUNE 1, 2020

Equity investors. The third source of funding is from equity investors. Under this category, you have the angel investors who would invest their own money and Venture Capital or VC firms, who manage funds aimed towards specific startup sectors and stages. For mature businesses, there are Private Equity or PE firms. ?

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Up and Running

JULY 23, 2014

The exit strategy isn’t about you, it’s about your investors. Startups looking for angel investors or venture capital (VC) absolutely need an exit strategy because investors require it. The company brings in money and the investors get money out. The exit is what gives them a return.

Exit Strategy 131

Exit Strategy Software Review Angel Investor Startup 131

The Startup Magazine

FEBRUARY 24, 2021

But how do you go about finding startup investors? There are multiple types of investors and each one is different. Angel investors. In many cities with a startup scene, there are angel investors. They are high net worth individuals who are also accredited investors. They often seem elusive.

Accredited Investor 90

Accredited Investor Angel Investor Initial Public Offering Due Diligence 90

Feld Thoughts

JUNE 2, 2010

I wasn’t able to make it to Boston yesterday for the Angel Boot Camp as I was running around NYC with the CEO of a company I invested in last week introducing him to a bunch of potential customers and partners. It sounds like Angel Boot Camp rocked. I generally made about one investment a month when I was active as an angel.

Angel Investor 167

Angel Investor Boston Due Diligence Cofounder 167

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. If they trust their own due diligence process why worry about a silly thing called “signaling?”

Technical Review 336

Technical Review Later Stage Early Stage LP 336

Gust

SEPTEMBER 12, 2011

It’s the result of several decades in high tech, three years as an investor in a local Oregon angel investment group , some consulting in due diligence for venture capital, and my experience as founder and co-founder of successful ventures. Startup experience. Respect for the exit. Closeness.

Technical Review 70

Technical Review Software Review Angel Investor Exit Strategy 70

Both Sides of the Table

SEPTEMBER 25, 2010

Paul Graham’s assertion that “any startup founder can tell you the most common question they hear from investors is not about the founders or the product, but “who else is investing?&# Investors who commit early deserve to have a lower price. But that’s what great angels do.

Finance 286

Finance Term Sheet Technical Review Warrant 286

Gust

NOVEMBER 11, 2011

Startups and investors discover each other, and the community wins because the event becomes visible evidence of new business and new jobs locally. And new angel investors are trained and oriented. In fact, before the final event, the investors have already done due diligence. Are they worth the risk?

Software Review 79

Software Review Term Sheet Due Diligence Angel Investor 79

Both Sides of the Table

APRIL 20, 2011

They have totally changed the way you run a VC firm, investing heavily in systems & events for their founders that are pushing the boundaries of the way our industry works. The discussion with Howard Morgan starts off by acknowledging Josh Kopelman as a co-founder of First Round Capital. I'm a huge fan of this innovation.

Pre-Money Valuation 284

Pre-Money Valuation Technical Review Cofounder Cram Down 284

Up and Running

FEBRUARY 22, 2013

If you’re raising money for your company and you want to pitch to angel investors or venture capitalists , then there are a few important things to know that savvy investors care about. If investors find your pitch interesting, they will want to begin what’s called the due diligence process.

Software Review 147

Software Review Technical Review Due Diligence Exit Strategy 147

Startup Professionals Musings

JUNE 11, 2016

As an advisor to entrepreneurs and active angel investor, I often get questions about the realism of the Shark Tank TV series, compared to professional investor negotiations. The simple answer is that with all the staging of TV lights and billionaire investors, it’s nothing like Silicon Valley.

Founder 120

Founder Due Diligence Angel Investor Silicon Valley 120

The Next Web

MAY 4, 2013

He is a part-time hacker, angel investor, and product advisor, and was selected from more than 300 people to “shadow” Dave McClure at 500 Startups. On top of deciding if the market is big enough, most investors only do one type of due diligence for seed deals: reference check the founders.

San Francisco 159

San Francisco Europe Technical Review Due Diligence 159