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Entrepreneurs: Your instincts are always better than bad advice

The Next Web

In many cases we have observed, the founders have given away too much equity to their first investors — typically angels and family offices, who have little experience with fast-growing startups or the venture capital funding model. Of course, not all of the fault in these lopsided structures lies with the angel investors.

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How to Evaluate an Offer from a Startup Incubator

The Startup Lawyer

Other incubators may want to set up an option pool. If so, the startup’s founders need to know this option pool lowers your pre-money valuation. A startup that is accepted by an incubator may have an alternative funding offer from an angel investor. 8) Determine the Opportunity Costs.

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ProfessorVC: Touched by an Angel

Professor VC

Touched by an Angel. I think the title of this post is a TV show, but fitting as there has been much debate in the venture community as to the whether angel investors are good or bad for entrepreneurs and VCs. What would the VC corollary to Touched by an Angel, be. What does it take to be an Angel Investor?

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Term Sheet Purgatory

The Startup Lawyer

It can be a mistake to arrive at a consensus with your investor on pre-money valuation & investment amount before receiving the full term sheet. Terms like the option pool , liquidation preference , and board composition are just a few other investment terms that have a meaningful impact on your startup.

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The Future of Startup Funding

www.paulgraham.com

The distribution of investors should mirrorthe distribution of startups, which has the usual power law dropoff.So One reasonstartups prefer series A rounds is that theyre more prestigious.But if angel investors become more active and better known, theyllincreasingly be able to compete with VCs in brand.

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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

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.

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How to Fund a Startup

www.paulgraham.com

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.