How An Angel Financing Works

Ask The VC

Angels Finance 27 Times More Start-ups Than VCs

Angel Blog

Angel investors fund about 16,000 seed / start-up companies per year in the US - about 27 times more. Scott Shane makes an important contribution to our understanding of entrepreneurship, angel investing and venture capital in his new book Fool’s Gold published earlier this year. Fool’s Gold is based on solid academic research and debunks several myths about early stage company financing. In 2003, the Federal Reserve did a study on Small Business Finances.

Trending Sources

Are VCs Interested in Funding a Services Agency?

Ask The VC

Are there angels/VCs that would be interested in my services concept? While there was a rash of VC financings for web agencies in the late 1990′s, when the Internet bubble burst VCs were reminded that these are companies that – at best – end up being valued at 1x revenue based on the underlying economic characteristics of the businesses. But for now, most of these companies will have to rely on bootstrapping or angel financings.

PR 33

TabbedOut Adds $3.7M

Austin Startup

While we have not seen the SEC filing, or an official statement from TabbedOut, TechCrunch is reporting today that TabbedOut has raised an additional $3.7M, perhaps as an extension of their Series A financing. Back in October we wrote about their $2M Series A, which added to their angel financing of $750K brought their total funding to $2.8M. Now with this additional $3.7M, their total financing is up to $6.5M.

SEC 15

Convertible Debt Series

Ask The VC

As part of the experience of releasing the book, we’ve gotten the chance to interact with many new people interested in the venture capital and angel financing process. The most often requested additional topic that we don’t cover extensively in our book is the use convertible debt in early stage – especially seed stage – financings. We’ve been overwhelmed by the support for our book Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist.

Should Investors in the Same Round of Financing Ever Get Different Prices?

Both Sides of the Table

But Paul Graham really did have a point in his “ high resolution fundraising ” post – that there is a problem – particularly in angel financing – with herding cats. Since 2009 I have been counseling people to offer discounts to the first angel investors.

Burn Rate vs Runway

StartupCFO

Being aggressive and increasing the probability of needing a bridge round is harder to do if you are angel-financed. Most angels don’t plan for reserves to bridge. Angels Growing Big Management Raising Capital Venture Capital Angel Burn Rate Fundraising mike cassidy XFire

Convertible Equity, A Better Alternative To Convertible Debt?

techcrunch.com

There has been no shortage of controversy and criticism around the convertible note, a popular investing vehicle that’s used by seed stage and angel investors. Ressi estimates that the debt note now accounts for over 50% of all angel and early stage deals. Startups. Mobile.

Answers to the 5 Most Common Angel Investor Questions

Growthink Blog

On Wikipedia, I found the word "angel" defined as "a supernatural being or spirit, often depicted in humanoid form with feathered wings on their backs and halos around their heads." While this might depict an "angel," it certainly is a far cry from the definition of an "angel investor."

How to Find the Perfect Startup Job: Part I "Start with 'When'"

Genuine VC

Much of the VC blogosphere commentary about startups covers venture and angel financing with advice focused on company founders. The primary dimension on which startups differ is stage: two guys in a garage is definitely a startup, so is a thirty person company growing with a second round of financing, and so is a 250 person company preparing for an IPO.

Financing your business: Debt vs Equity

StartupCFO

So what I would like to do here is layout a more comprehensive framework for the pros and cons of debt versus equity and when you could look at each for financing your business. Therefore, this is often not the starting point for financing your business. Deciding how to finance.

VC Kay Koplovitz: 'Tell Them How You're Going to Make Them Money'

Inc Startups

What will help women founders seeking start-up financing? A couple years ago a study out of the University of New Hampshire Center for Venture Research reported that 21 percent of entrepreneurs seeking angel financing were women, and only 13 percent of those received investment.

Can You Raise Money This Year? These 3 Trends May Decide

Inc Startups

If you''ve received venture or angel financing, low interest rates have helped make your life a lot easier -- even if your company doesn''t have a drop of debt. Those big valuations flow downstream, encouraging angels and venture investors to be more generous when they value companies.

Crowdfunding Sites Offer 5 Hidden Benefits

Growthink Blog

To start, Crowdfunding is the process of getting a group of regular individuals (versus banks, venture capitalists or angel investors) to collectively fund your venture.

What Should You Do with Your Crappy Little Services Business?

Both Sides of the Table

It’s nearly impossible to get a services company financed by VCs. They have created two internal technology “products&# and wanted to figure out how they could turn their services business into a product business that could be financed.

Don't Make Raising Angel Funding Your Plan B

OnStartups

Chris is a seed stage VC and angel investor at CommonAngels. I wear two hats one as a general partner of a couple of seed stage VC funds, the other as an occasional angel investor. Pitch to angels as partners not just a means to get the VC round.

Knowledge & Networks Enabling More Youth Entrepreneurship

Ben Casnocha: The Blog

Silicon Valley-style entrepreneurship, practiced around the world, is hot.

Startup Tools

steveblank.com

The 5 Key Stages of Equity Funding

Growthink Blog

Mezzanine Financing Most companies that raise equity capital and are eventually acquired or go public receive multiple rounds of financing first. Put everything else on your "wish list" to buy with revenues from sales or additional financing.

Interview with Sramana Mitra on 1M/1M Program

Life Beyond Code

Through this journey, we have raised the visibility of fundamental issues like the causes of exorbitantly high infant entrepreneur mortality, and alerted the entrepreneur community with a simple observation: Entrepreneurship = (Customer + Revenue + Profits); Financing is Optional. This, of course, doesn’t mean that we discourage entrepreneurs to seek financing. 1M/1M Program has a bold mission.

A "Rich-vs.-King" Approach to Term Sheet Negotiations

Altgate

Share and Enjoy: This entry was posted in Entrepreneurship , Venture Capital and tagged angel financing , entrepreneur , founder , fund raising , negotiation , startup , term sheet , venture capital.

America's Coolest College Startups 2014

Inc Startups

The company won $21,000 and went on to raise $185,000 from angel investors and an accelerator, AlphaLab, to build out the product and acquire its first paying customers. Spine Sweat aims to put ambitious student entrepreneurs in front of investors for seed and angel financing opportunities.

Are You Raising Too Much Money?

Inc Startups

Within my own portfolio, for example, the Hoopla Software founding team gained over three dozen paying customers from their angel financed efforts before seeking the first institutional round of investment.

With Angels Like These, Who Needs VCs?

Inc Startups

Ondot, a financial technology startup, tries to get to breakeven using only angel money. To do it all with angel financing is pretty much unheard of. Since then, the initial investors have re-upped and also brought on new angels.

3 Reasons to Look to the Angels for Start-up Funding

Inc Startups

But at the initial seed financing stage of your start-up, VCs are not always the better option In fact, angel investors often have more to offer. Here are three benefits you'll enjoy from angel investors as you build a foundation for your start-up: 1.

Startup Strategy Roundtable: Top 10 Tech Trends To Watch

ReadWriteStart

The company is profitable and has so far raised only $400,000 in friends and family and angel financing. At this point, he can grow organically and leverage channel partners and other creative modes of non-equity financing and preserve equity as much as possible.

How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR). Series Seed Financing Documents (by Fenwick & West). This post assumes that you have a basic understanding of Series A financing terms.

Why Valuations are Ready to Tumble

Inc Startups

According to the Pepperdine report, the median pre-money valuation for a company receiving its very first round of angel financing is now $1 million, almost double the $550,000 valuation that same company would have been able to get a year ago.

[U.S.] Small Businesses Look To Hire In The Next Six Months: Pepperdine

YoungUpstarts

When it comes to seeking financing, small businesses say they are most willing to use bank loans as a financing option (70.7%), followed by angel financing (35.7%), private equity (28.1%) and venture capital (27.2%).

Burnham's Beat: Why Convertible Debt Is A Sucker's Play

Burnham's Beat

Articles on Technology and Finance. There are some good posts going around today on the topic of using convertible debt in seed stage venture financings including one by my former colleague Seth Levin over at Foundry that is worth a look. However, times have changed and convertible notes no longer make sense from an angel investor’s perspective primarily because startup capital/operating costs are now so low. Lords of Finance. ">. Burnhams Beat.

Know Your Angels

Inc Startups

Angel investors frequently regret the investments they make. Just as their name implies, angel investors can come to the rescue of early-stage business ventures by supplying much-needed cash. It queried 100 angel investors in July.

This School's Alums Land the Most VC Funding

Inc Startups

Over two decades later, the company’s name--an acronym for Stanford University Network--could also apply to the investing practices of venture firms and angel investors. billion in angel financing or venture funding in more than 559 financing transactions.

Angel Funding Advice

Both Sides of the Table

Last night I attended a DealMaker Media (whom I love because they always host such great discussions) panel on raising angel money moderated by Dan Gould and with panelists Rob Hayes (First Round Capital, more seed or A round than angel), Scot Sangster (with OrganicStartup and the best spokesperson for Tech Coast Angels that I have met to date), Tom McInerney (TGM) and Jarl Mohn (who invests on his own “account&# and whose track record is truly humbling).

Strategy Roundtable For Entrepreneurs: Crowd Sourced Funding Exchanges - An Emerging Trend

ReadWriteStart

Earlier, of course, we covered AngelList at length , also a crowd sourcing venture in the angel financing space, and this week, we have covered SecondMarket , which is powering Facebook's private market capital raising.

59 Angels

Texas Startup Blog

Over the years I have compiled a list of angel investors and I figured that I would share that list with you. Before you pick up the phone or send an email I would spend a few minutes reading up on how and why angels invest in early stage companies. Angel Capital Association.

The most important person on the startup team

Berkonomics

500 CEO, serial entrepreneur and the founder of New York Angels. founder and CEO of Gust, the angel financing platform used by over 50,000. accredited investors in 1,000 angel groups and venture capital funds to. By David S.

The Microsoft Accelerator, round 2!

David Cohen

Most of those companies from the Kinect program are doing great, and many have gone on to raise venture capital or angel financing since the program ended. The Microsoft Accelerator for Kinect concluded earlier this year.

Why Profitable, Growing Companies Can't Get Financing

Inc Startups

Years later I’ve done angel, venture capital, private equity, commercial debt, and mezzanine debt deals as a founder, operator or board member for companies of all sizes, and have a much better understanding of what works when.

OnMedia NYC

Will Price

I will be speaking Wednesday on the OnMedia Venture Capital and Seed Financing Workshop - 10 am at the Lotus Suite. I will be in NYC this week for the OnMedia NYC conference. The conference looks like an interesting intersection of technologists, advertisers, and media companies.

Who, When, and How Much? A Quick Introduction to Startup Financing

Gust

For a first time entrepreneur trying to figure out the arcane world of startup financing, it can be very confusing to understand the roles that different types of investors play in funding promising companies, as well as the point in a company’s life at which they enter the stage. 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.