Gust

MARCH 26, 2014

As Ryan Lackey noted, having a lot of money is essentially irrelevant in this context, because that is not the way venture capital works. A venture capitalist (colloquially known as a VC) is a professional money manager who gets paid to manage *other* people’s money, not his or her own.

Angel Investor 138

Angel Investor Early Stage Venture Capital Partner 138

Gust

FEBRUARY 22, 2014

As we end 2012, Gust is the official, exclusive platform of virtually every national federation of business angels in the world including the United States, Canada, Australia, New Zealand, Ireland, Scotland, France, Portugal, Spain, Russia, Belarus, Kazakhstan, India, even China, all in their native languages.

Belarus 107

Belarus Kazakhstan Portugal Accredited Investor 107

Gust

JANUARY 22, 2014

As a very active angel investor myself, I frankly can’t imagine how I could keep track of all the pieces without Gust. However, in the not-too-distant future, Gust will add support for “un-affiliated” angel investors, provided that they are able to verify their accreditation status and bonfides.

Angel Investor 150

Angel Investor Angel Groups Accredited Investor Early Stage 150

Gust

FEBRUARY 26, 2014

There are surprisingly few such conferences, for the very good reason that there are actually relatively few such people (venture capitalists and ‘professional’ angel investors) to attend them! But that said, here are the biggest (i.e., “only” events of their type): Business Angels.

Angel Investor 125

Angel Investor Global Angel Groups Europe 125

Gust

DECEMBER 28, 2011

In the “good old days,” angels invested in seed-stage startups and teed up promising companies for subsequent venture capital financing. If the company was successful, this quickly led to an IPO – a very happy ending for the entrepreneur, the angels, and the venture capitalists. My, my…how the world has changed.

IPO 153

IPO Venture Capital Entrepreneur Angel Investor 153

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

NOVEMBER 22, 2011

Angel investors typically provide early-stage funding, while venture capital firms typically come in at later stages. Yet most investors will tend to categorize your progress into one of the following five stages: • Idea stage. Lesser amounts remain in the angel realm. Funding or rollout stage. Growth stage.

Venture Capital 171

Venture Capital Investment Bankers Angel Investor Initial Public Offering 171

Gust

SEPTEMBER 3, 2014

Gust.com is the most widely used tool platform for both sides, with hundreds of thousands of companies and tens of thousands of investors using it to track and manage their relations with the other. It’s also used by over 300 venture capital funds.

Management 115

Management Vesting Angel Investor Venture Capital 115

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. Angel investment events where the due diligence isn’t done before the event. Local media cover it.

Software Review 79

Software Review Term Sheet Due Diligence Angel Investor 79

Gust

DECEMBER 21, 2011

The Valley produces world-class entrepreneurs, angel investors, venture capitalists and successful high-tech companies – all growing and creating jobs on one relatively small peninsula. Silicon Valley is a very special place – the nucleus of high-growth, high technology entrepreneurship in the US, indeed, in the world.

Silicon Valley 107

Silicon Valley Southern California Tucson Seattle 107

Gust

JANUARY 22, 2014

As a very active angel investor myself, I frankly can’t imagine how I could keep track of all the pieces without Gust. However, in the not-too-distant future, Gust will add support for “un-affiliated” angel investors, provided that they are able to verify their accreditation status and bonfides.

Angel Investor 89

Angel Investor Angel Groups Accredited Investor Early Stage 89

Gust

DECEMBER 13, 2011

I’ve recently taken a look at seed stage funding by venture capitalists (VCs) and angel investors over the past five years. Here are the trends in venture capital financings from 2006 through 2010 – the number of seed stage deals funded and total investment by region in millions of dollars. .

Seed Stage 162

Seed Stage Southern California San Diego Silicon Valley 162

Gust

AUGUST 10, 2014

Here are some basic rules of thumb that every Angel or venture capital equity investor uses, to help you anticipate their reactions. Of course, the quality of your management team, or demonstrated performance in prior similar ventures, can override any or all of these rules of thumb.

Liquidity Event 176

Liquidity Event Equity Venture Capital Merger 176

Gust

DECEMBER 1, 2011

Sources of Capital for Startup Entrepreneurs – The primary sources of cash for new companies are (1) self (the entrepreneurs’ resources), (2) government grants, (3) friends and family, (4) angel investors and Super Angels , (5) venture capitalists and (6) strategic investors.

SBIR 120

SBIR Startup New York City Angel Investor 120

Gust

SEPTEMBER 27, 2014

There are 450+ back episodes online, and it’s safe to say that if you listen to it regularly, within a few months you will know more about what makes angel investors tick than do 98% of the rest of the world…including other angels! Create your Gust profile to show off your venture in the best possible light.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

Gust

OCTOBER 31, 2011

Another reality is that angel investors and venture capital groups almost never invest in a services-only company. Their perspective is that these entrepreneurs need only to sell themselves, but shouldn’t need capital up front for product development or manufacturing.

Angel Investor 143

Angel Investor Venture Capital Partner Networking 143

Gust

DECEMBER 6, 2011

Angel investors will frequently talk about betting on the jockey, not the horse. Sell your angel investors your business, not your optimism. But it’s about your business, and you fit in as the manager who will drive it. In that case, it’s betting on the jockey’s skill and experience, not just optimism or passion.

Angel Investor 70

Angel Investor Early Stage Business Plan Sales 70

Gust

JANUARY 4, 2012

If you’re here on gust.com as an entrepreneur, I think you should know that many angel investor groups like convertible notes, mainly for one of the reasons Fred mentions: angel groups often look at relatively early stages, and the convertible note puts off the valuation for later, when – everybody involved.

Angel Investor 114

Angel Investor Valuation Angel Groups Equity 114

Gust

DECEMBER 5, 2011

Early-stage investors won’t risk this much. Angel investors can’t help you, and most venture capitalists won’t be interested in contributing the first several million. So, if you have a new technology that you believe can change the world, you need to team with someone who has really deep pockets.

Technology 167

Technology Angel Investor Early Stage Viral 167

Gust

DECEMBER 16, 2011

Your third-most important story, if you’re pitching to angel investors, is how you’re going to make them some money if they write you a check. Sometimes it’s the story of an idea, a technology, a quest for solutions, or solutions coming together. What story you tell depends on what makes your business different.

Exit Strategy 98

Exit Strategy Angel Investor Differentiation Audience 98

Gust

DECEMBER 28, 2011

If you’re working on financial projections for angel investors, read Mark’s post in detail. Most companies should focus on profits, he says ( although he isn’t talking about excess profits ); but there are some notable exceptions.

Angel Investor 79

Angel Investor IPO Search Web 79

Gust

DECEMBER 20, 2011

Twenty or so angel investors (me included) sit on tables arranged like a big U, with a table in the middle for a projector, and a screen in front. Picture a meeting room with a lot of windows, early evening, early Spring, the Oregon landscape darkening outside. An entrepreneur has just finished his pitch.

Angel Investor 93

Angel Investor Oregon Business Model Search 93

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. Another angel round. – Need venture capital.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

Gust

OCTOBER 25, 2011

This might seem awkward on this site, suggesting that you don’t want angel investment. But angel investment isn’t for everybody. I’m an angel investor now, but I also had a small piece of co-founder equity in a software company that went public, and whole ownership of a software company that grew and prospered but remained private.

Cofounder 133

Cofounder Angel Investor Equity Software 133

Gust

OCTOBER 5, 2011

( Investors , of course, may disagree.). In case it isn’t clear by now, angel investors aren’t in the business of making risky early stage investments in order to earn 6% interest on their money, or even 10%— the upside is all in conversion to equity—so the interest rate isn’t a major point of negotiation.

Finance 79

Finance Preferred Stock Term Sheet Early Stage 79

Gust

OCTOBER 21, 2011

Assuming a hypothetical $100,000 investment at a 10% interest rate, this kind of payoff would yield a return of $5,000 ( 5% ) six months later – not exactly the kind of return angel investors are looking for when they make risky early stage investments.

Finance 79

Finance Pre-Money Valuation Term Sheet Liquidity Event 79

Gust

OCTOBER 3, 2011

It is not unusual to hear people refer to “angels-and-vcs” in a single breath, even though those are two very distinct groups with different attributes. If a company is appropriate for angel financing , for example, it is highly unlikely that it would also be in a position to raise venture capital, and vice versa.

Finance 70

Finance Venture Capital Intellectual Property Early Stage 70

Gust

NOVEMBER 28, 2011

Every investor is looking for the “dream team” of executives to put his money on. Often I find that experienced investors flip to the management page of a business plan, even before they read the product description. What are investors looking for in the CEO and the rest of the top executives?

Startup 147

Startup Bootstrapping Social Network Internet 147

Gust

DECEMBER 23, 2011

A gigantic percentage of startup literature concerns how to raise capital. Strategically, the advantage outside capital provides is obvious: you can go faster. But before you start on that PowerPoint, let’s ask this: do you really have to? Or is it still possible to bootstrap and build a company organically?

Intellectual Property 127

Intellectual Property Balance Sheet Dilution Bootstrapping 127

Gust

SEPTEMBER 13, 2011

When we originally conceived of a single platform tying together the world’s entrepreneurs, angel investors, venture capitalists and supporting organizations , it quickly became apparent that the biggest challenge had nothing to do with technology.

Angel Investor 79

Angel Investor Silicon Valley Venture Capital Finance 79

Gust

DECEMBER 27, 2011

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. Here is the inverse, sometimes called reverse due diligence, describing what you should do to validate your investor before signing up for an equity partnership.

Due Diligence 119

Due Diligence Entrepreneur Offshore Angel Groups 119

Gust

DECEMBER 22, 2013

Professionals will tell you that the sequence is friends and family first, angel investors second, and only then venture capital. The process for all of these is networking (not email blasts or cold-calling investors). Start with the local Chamber of Commerce, industry associations, or investor seminars.

Entrepreneur 184

Entrepreneur Angel Investor Bootstrapping Venture Capital 184

Gust

DECEMBER 12, 2011

I often hear from investors that a great idea is necessary, but not sufficient. After the idea, it’s all about execution. The most important thing is a proven team , meaning one who has built a startup before, and has experience with the execution process in this domain.

Cost 114

Cost Business Plan Entrepreneur Startup 114

Gust

NOVEMBER 23, 2011

Talented entrepreneurs are nothing if not resilient in the face of change: Market forces, competitive threats, technological shifts, you name it. In recent years, government regulation has emerged as another such force to be reckoned with in the technology industry.

IPO 110

IPO Prospectus SEC Intellectual Property 110

Gust

JANUARY 3, 2012

The dictionary definition of a mentor is “an experienced and trusted advisor,” or “leader, tutor or coach.” The definition of a critic sounds similar, “a person who offers reasoned judgment or analysis.” The big difference, of course, is that a mentor looks ahead to help you, while a critic looks backward to tell you what you did wrong.

Government 98

Government Employee Community Entrepreneur 98

Gust

DECEMBER 19, 2011

One of the most important questions you will be asked by potential investors is how your solution beats the competition’s, not just today, but over the three to five year life of their investment. There is no perfect answer to this question, but there are many wrong answers which will immediately jeopardize your credibility.

Viral 98

Viral Advertising Lead Investor Revenue 98

Gust

DECEMBER 16, 2011

And, a bit misty-eyed, this old war veteran can actually remember the glory days: Venture capitalists would commit tens of millions for a startup to buy expensive infrastructure; hire sales and marketing teams as products were still being built; and lease out big slugs of office space for the coming hiring spree. Hardly a founder now alive.

IPO 87

IPO .Net Social Network Mobile 87