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ProfessorVC: Negotiating an Angel Deal in your PJ's

Professor VC

I had a discussi on with another angel investor a few months ago and he was bragging about the deal he just struck that included a 3X participating liquidation preference. This will both reduce the number of angel investors and make it more difficult to syndicate across stage lines. Steve Bennet.

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Pari Passu or F.U.little guy

Professor VC

In investment parlance, it strictly means that new classes of stock have equal rights with prior classes in terms of liquidation preference, voting rights, etc. I was working closely with an entrepreneur and introduced another angel investor to the company. Seems like my rant is picking up steam now.

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How to Be an Angel Investor

www.paulgraham.com

When youhear people talking about a successful angel investor, theyre notsaying "He got a 4x liquidation preference." Mechanics Angel investors often syndicate deals, which means they join togetherto invest on the same terms. Dont feel like you have to join a syndicate, though.

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The Silliness Of Recapping Seed Rounds

Feld Thoughts

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%.