Startup Professionals Musings
JANUARY 27, 2012
It’s true that Angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.” Seat on the board. Define equity type.
Startup Professionals Musings
SEPTEMBER 14, 2010
It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.” Seat on the board. Define equity type.
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Gust
OCTOBER 17, 2011
It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.” Seat on the board. Define equity type.
Both Sides of the Table
MAY 13, 2013
If the money comes from professional investors it usually has a “liquidation preference” meaning that their money comes out before the founders or common stock. (If And on many occasions I have passed on deals where it was clear that the founding team was over-optimizing the deal structure to focus on a quick exit.
Gust
OCTOBER 21, 2011
What these approaches have in common is that they cap the investors’ upside such that even in the most spectacular of liquidity events, unless the notes convert to equity first at a lower valuation, angels don’t get anywhere near the payoff awarded to equity holders. Most would agree this is not a fair outcome.
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