Gust

NOVEMBER 11, 2011

In fact, before the final event, the investors have already done due diligence. Angel investment events where the due diligence isn’t done before the event. In most of the events that I’ve participated in, that the appearance of a business plan contest is to some extent illusion.

Software Review 79

Software Review Term Sheet Due Diligence Angel Investor 79

Gust

JULY 12, 2012

On May 2nd and 3rd, I led workshops for about thirty Estonian investors on syndication, due diligence, valuation and the post-investment relationship with entrepreneurs. That same afternoon, FiBAN organized a two-hour workshop on Due Diligence in the offices of PricewaterhouseCoopers.

Community 121

Community Estonia Ireland Finland 121

Gust

DECEMBER 22, 2011

.” Apart from all the other benefits of good corporate hygiene and risk management, handling these IP issues carefully from inception can go a long way to allay the concerns investors or their counsel may have in doing due diligence.

Intellectual Property 149

Intellectual Property Technical Review Software Review IP 149

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. What I say here is my opinion and mine alone. Startup experience.

Technical Review 70

Technical Review Software Review Angel Investor Exit Strategy 70

Gust

FEBRUARY 5, 2013

Still, read Avoiding Undue Diligence: My Strange Approach To Angel Investing , in which Dharmesh Shah argues against due diligence in angel investment. . I don’t subscribe to the idea in the title.

Due Diligence 121

Due Diligence 121

Gust

APRIL 30, 2014

As a result, my investing has changed from limited investing (1-3 deals a year with intense due diligence) to broad-based investing (5-10 deals a year, with more moderate work).

Angel Investor 148

Angel Investor IRR Due Diligence Aggregator 148

Gust

MAY 21, 2014

That’s why 90%+ of funded US startups are C corporations. Providing an 8-page summary makes no sense. 3) A Term Sheet is *prospective*, setting forth the future structure under which a potential investor *would* invest.

Limited Liability Company 150

Limited Liability Company Term Sheet NDA Due Diligence 150

Gust

OCTOBER 17, 2011

Due diligence and paperwork take time, and can change everything. Remember that due diligence and negotiation take time. Remember a term sheet agreement is not a deal until the check clears. It prevents the entrepreneur from selling early, at a loss to the investor.

Term Sheet 158

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 158

Gust

JUNE 26, 2012

Suffer that in silence and maybe your potential investors will discover that in due diligence. The moral of the story is obvious: maybe you are a victim, maybe they did screw you, but if that’s the case, then get over it. Never take that up as a banner. Let them find out. Don’t tell them. . Image: istockphoto.com).

Due Diligence 121

Due Diligence Hiring Partner Product 121

Gust

NOVEMBER 29, 2011

Experienced angel and venture capital investors spend lot of time independently evaluating the investment opportunities (a process called “due diligence”). This due diligence has been shown (by Wiltbank ) to radically improve their returns on investment – helping investors pick the right new companies to fund.

Securities and Exchange Commission 154

Securities and Exchange Commission Accredited Investor Angel Investor Due Diligence 154

Gust

JANUARY 15, 2013

It’s not that much about a rocky recent past; it’s more about money being too easy in the recent past, and now, as a natural result, things get tighter because “easy” money doesn’t always mean enough of the due diligence and thought to make good deals. This is what I hear from my own sources.

Due Diligence 119

Due Diligence Startup Angel Investor Early Stage 119

Gust

OCTOBER 18, 2011

This is the first of a six part series on different methods used by angel investors to arrive at pre-money startup valuations. Below is a brief description of each of the most popular methods.

Valuation 174

Valuation Pre-Money Valuation Southern California Post-Money Valuation 174

Gust

NOVEMBER 1, 2011

We recently started a series of posts on establishing the pre-money valuation of pre-revenue startup companies for purposes of investment by seed and startup investors. The Venture Capital Method (VC Method) was first described by Professor Bill Sahlman at Harvard Business School in 1987 in a case study and has been revised since.

Venture Capital 161

Venture Capital Valuation Pre-Money Valuation Post-Money Valuation 161

Gust

NOVEMBER 15, 2011

There is a stream in entrepreneurship lore that the entrepreneur doesn’t need or want education, a fire fed by legendary dropouts Steve Jobs, Bill Gates, Mark Zuckerberg, etc. Why waste your time studying? Just do it; or so it goes. So how do angel investors fall on this question? Does the degree add credibility? Is it worth it?

Angel Investor 101

Angel Investor Software Review Technical Review Engineer 101

Gust

OCTOBER 29, 2014

That’s why one of the best options for you today is to join a local angel investor group, where you will work collegially with 25-250 other investors to hear pitches from companies, do your due diligence homework, and then—if you are interested—pool your money with the others to make meaningful investments.

Accredited Investor 157

Accredited Investor Securities and Exchange Commission Technical Review Due Diligence 157

Gust

DECEMBER 27, 2012

These range from outbound materials, such as pitch emails and funding applications, to presentations of your venture in different forms for different purposes, to detailed back-up information that you will be asked to supply during due diligence.

Software Review 164

Software Review Term Sheet Technical Review Angel Investor 164

Gust

NOVEMBER 15, 2011

The Risk Factor Summation Method the fifth methodology for estimating the pre-money valuation of pre-revenue companies we have described in recent posts. Readers may have noted that both the Scorecard Method and the Dave Berkus Method considered a narrow set of important criteria for investment in arriving at a pre-money valuation.

Valuation 102

Valuation Pre-Money Valuation Ohio Early Stage 102

Gust

NOVEMBER 2, 2011

We recently started a series of posts on establishing the pre-money valuation of pre-revenue startup companies for purposes of investment by seed and startup investors. Dave Berkus is a founding member of the Tech Coast Angels in Southern California, a lecturer and educator. He has invested in more than 70 startup ventures.

Valuation 79

Valuation Pre-Money Valuation Intellectual Property Southern California 79

Gust

OCTOBER 20, 2011

Working within a network of angel investors also expands the pool of expert resources and helps divide the work of screening companies and investment due diligence. A local network of angels is critical to achieving a diversified portfolio.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

Gust

NOVEMBER 7, 2011

We recently started a series of posts on establishing the pre-money valuation of pre-revenue startup companies for purposes of investment by seed and startup investors.

Valuation 87

Valuation Pre-Money Valuation Venture Capital Technical Review 87

Gust

OCTOBER 15, 2012

An impromptu Twitter debate arose among Fred Wilson, Dave McClure, Mark Suster, Chris Dixon and others about convertible debt, priced equity rounds, and the nuances of early stage financing. It was such a good discussion that Fred asked that someone Storify it.

Equity 140

Equity Early Stage Finance Due Diligence 140

Gust

JANUARY 5, 2012

Securities Exchange Act of 1934, section 12(g), generally limits a privately held company to fewer than 500 shareholders. The assumption has been that companies with 500 investors are quasi-public anyway, and for disclosure and other reasons should be forced to go public when the shareholder number approaches this limit.

SEC 131

SEC Angel Groups Technical Review Private Equity 131

Gust

DECEMBER 7, 2011

There seem to be two motivations behind the current buoyant enthusiasm in Congress over crowd funding for entrepreneurs: 1) the democratization of funding for startup companies (no longer requiring such investors be wealthy) and 2) the job creation that is expected to result from creating more startup ventures.

.Net 98

.Net Revenue Networking Startup 98