8 Ways To Get Off The Ground With Angel Investors

Startup Professionals Musings

Angel investors are still the lifeblood of early-stage startups, despite the surge of activity in crowdfunding and an increasing early interest from venture capitalists. These are all accredited investors who risk their own money. angel investor early-stage entrepreneur startup

8 Insights For Startups To Attract Angel Investors

Startup Professionals Musings

But many have no insight or connections to the ethereal angel investment community, which actually funds more startups then all other venture sources combined (over $25 billion annually). Angels are typically current or former entrepreneurs who want to bring more than money to your startup.

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10 Action Items to Keep Angel Investors Hovering

Gust

ABC Shark Tank Angels via Elite Daily. Every new startup I know dreams of being funded early by one of the 318,000 active Angel investors in the USA alone. Don’t expect the pomp and celebrity of the Angels on Shark Tank , but they do ask a lot of the right questions.

10 Action Items to Keep Angel Investors Hovering

Startup Professionals Musings

Every new startup I know dreams of being funded early by one of the 318,000 active Angel investors in the USA alone. Most of these investors are members of Angel groups that have a rigorous filtering and screening process, to select the top 3% and most fundable proposals.

Angel Investors Skip Startups With No Profit Motive

Startup Professionals Musings

Angel investors and venture capitalists don’t make equity investments in non-profits. The simple reason is that it’s impossible to make money for investors when the goal of the company is to not make money.

Learn From the 5 Core Principles of Angel Investors

Startup Professionals Musings

If your startup is looking for an Angel investor, does it makes sense to present your plan to flocks of Angels, and assume that at least one will swoop down and scoop you up? Maybe friends and family will give you money with no plan, but Angel investors expect a real plan.

5 Angel Investor Biases That You Can Capitalize On

Startup Professionals Musings

If your startup is looking for an angel investor, does it makes sense to present your plan to flocks of angels, and assume that at least one will swoop down and scoop you up? Maybe friends and family will give you money with no plan, but angel investors expect a real plan.

Five Things Every Entrepreneur Should Know About Angel Investors

Startup Professionals Musings

If your startup is looking for an angel investor, does it makes sense to present your plan to flocks of angels, and assume that at least one will swoop down and scoop you up? Maybe friends and family will give you money with no plan, but angel investors expect a real plan.

Exit Strategies Videos

Angel Blog

My latest post is a video of a talk I gave on Exit Strategies for Angel Investors and Entrepreneurs at the Angel Capital Association Annual Summit in Atlanta. Topics include: The Current Environment for Exits. The Fact that Most Exits are Under $20 million.

10 Reasons For Joining The New Startup Wave Now

Startup Professionals Musings

Initial Public Offerings (IPO) are back as an exit strategy. According to Statistic Brain , angel investors, numbering almost 300,000, contributed a record $25 billion to early-stage startups in the U.S. angel investors business entrepreneurs startup wave venture capital

5 Tips to Appeal to Angel Investors

Business Plan Blog

5 Tips to Appeal to Angel Investors. Often times, entrepreneurs get rejected from Angel after Angel because they neglect to understand the essential components that appeal to Angel investors. Exit strategy. Exit Strategy.

Finding Angel Investors & Convincing Them to Give You Funding

Growthink Blog

Getting funding from angel investors is the same way. Because the most important time you spend influencing potential investors is done long before you present to them, even long before you even contact them; it's done when you prepare your company for funding.

The 3 Essential Questions You Have to Answer for Angel Investors

Gust

Are you wondering about angel investment ? How to find investors? The background is that angel investors have been there themselves, generally, and they know that nothing prepares a person for going through a startup like having already gone through a startup. Are you committed to an exit? Just growing and thriving isn’t enough for angel investors; you have to be able to give them a way to get their money back out of your business.

IPOs, M&As, Liquidity, & You. (the entrepreneur)

Gust

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. The two major differences in the exit environment in the past decade are (1) the disappearance of the IPO market and (2) the rapidly increasing size of the average VC fund.

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The 8 Things Angel Investors Want

Growthink Blog

There are eight key things angel investors will look for when considering whether or not to fund your business. No matter how good your venture is, if the investor doesn''t like you, they generally won''t fund you. As such, it''s good to think about your exit strategy early.

Read Early Exits – Exit Strategies for Entrepreneurs and Angel Investors

Instigator Blog

If you’re an entrepreneur, working at a startup, or thinking about starting a company, you should read Early Exits: Exit Strategies for Entrepreneurs and Angel Investors by Basil Peters. Make no mistake — an early exit isn’t easy!

Adding Slides Does Not Enhance Your Investor Pitch

Startup Professionals Musings

As a member of the local Angel group selection committee, I’ve seen a lot of startup presentations to investors, and I’ve never seen one that was too short - maybe short on content, but not short on pages! Investors like $1B markets with double-digit growth rates. Exit strategy.

Limiting the Number of Shareholders in Private Companies

Gust

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. But, this SEC limit has created some problems for these high-tech phenoms, both in raising additional capital and in private sales through secondary markets in which early investors resell shares to a large number of smaller US buyers. The U.S.

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Probable and Improbable Lobbying Wins: The 1,000-stockholder Rule

Gust

Increasing the associated risk would have a chilling effect on the entrepreneurs who found these companies and the investors who fund them, diverting startup activity (and value creation) away from what might otherwise be some of the most innovative new businesses in the “Web 3.0” Invested Interests angel investment angel investors equity exit strategy IPO shareholders startups venture capital

How to Pick the Right Attorney For Your Startup

Up and Running

You can’t underestimate the importance of selecting an attorney who “gets” your business model, your market opportunity, and most importantly, your fundraising and exit strategy. We soon got interest from an angel investor, and he wanted to invest $300,000 in our startup.

Books for Young Entrepreneurs – How To Build a Business and Sell It For MILLIONS by Jack Garson

NFIB Young Entrepreneur Foundation Blog

However, many entrepreneurs are missing two key things: An exit strategy. Knowledge of what an exit strategy is. An exit strategy is basically a plan to sell/merge/or otherwise “exit&# your business. How does one GET an exit strategy?

Poll: Have you thought about your company's exit strategy?

ArcticStartup

But looking at the numbers, only a few companies in the Nordics and Baltics seem to make it to an IPO every year, and it''s not every day that I write about mid or later-stage companies that are entirely bootstrapped or are cashing out their investors from revenue.

Exit Strategies for Angel Investors Video

Angel Blog

The Northwest Energy Angels invited me to Seattle to talk about exit strategies for Angel investors. Some of the highlights include: Organized angel investing is still quite new - only ten or twelve years old.

Conversations with Richard Chino, pt. 1

Ask the Angels

Richard discusses his background and experience, and shares thoughts regarding emergent opportunities for start-ups and for investors. What attracted you to becoming an angel investor? That’s when I came across the Pasadena Angels.

A long time ago in an economy far, far away.

Gust

Be willing, even anxious, to take a solid exit when the opportunity arises. Industry Experts angel investment angel investors entrepreneurs entrepreneurship exit strategy fundraising initial public offering IPO market venture capitalListen my children and you shall hear. Of IPO dreams once held so dear. Our forefathers’ jackpot, guaranteed to arrive. Hardly a founder now alive. Can remember that famous yesteryear.

Six Ways to Fund a Non-Profit, Without an Investor

Startup Professionals Musings

Angel investors and venture capitalists don’t invest in non-profits. The simple reason is that it’s impossible to make money for investors when the goal of the company is to not make money. In addition, the best non-profits turn out to be the angel, rather than require one.

Non-Profits Need Angels, But Not Angel Investors

Startup Professionals Musings

Angel investors and venture capitalists don’t invest in non-profits. The simple reason is that it’s impossible to make money for investors when the goal of the company is to not make money. In addition, the best non-profits turn out to be the angel, rather than require one.

How Long Before Venture Capitalists (and Angel Investors) Get Liquidity?

David Teten

It’s fascinating to be an angel investor, but do most angels actually make positive returns? But the bad news: according to CB Insights , the average time for VCs to exit via M&A is 5 years, and via IPO is 7 years. Angel investing Contributed Articles Venture Capital

How to Pitch to Angel Investors

Business Plan Blog

How to Pitch to Angel Investors. You have finally set up that meeting with an angel investor and have everything prepared for your pitch. While it is important that you have a product that works, in your first meeting, angels will assume that your technology works.

5 Essentials for Angel Investment

Up and Running

Three months ago I posted Securing Angel Investors in this space. The vast majority of potentially successful startups are not going to get angel investment no matter how good their pitch or plan. Here’s what it takes to get angel investment: It has good growth potential.

5 Things I Look when Investing in a Startup

Gust

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. Respect for the exit. I don’t care that much about the specifics of the exit strategy, because things change too fast and exits are 3-5 years in the future.

What’s the Difference Between a Small Business Venture and a Startup?

Up and Running

That’s because investors are looking for the highest potential return on investment, while balancing the associated risks.”. Startups tend to rely on capital that comes via angel investors or venture capital firms while small business operations may rely on loans and grants.

Exits with VC and Angel Investors

Angel Blog

The most important new data on angel investing comes from Robert Wiltbank of Willamette University and Warren Boeker of the University of Washington. Robert Wiltbank is one of the world's pre-eminent researchers on angel and VC investment.

Good Sources for on Pros & Cons of Convertible Notes

Gust

Entrepreneurs: if you’re looking seriously at angel investment, and you have the kind of product-market fit and management experience investors will like, you need to take a good look at convertible notes. Do yourself and the investors you want to talk to a favor: take a few minutes and do some homework on this issue.

Outside capital: do or die?

Gust

Invested Interests angel investment angel investors board of advisors entrepreneurs entrepreneurship execution exit strategy fundraising startups tactics venture capitalA gigantic percentage of startup literature concerns how to raise capital. 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?

10 Preparation Steps to Win an Angel Investment

Startup Professionals Musings

Every new startup I know dreams of being funded by an angel investor. Over the past 10 years, I have had the opportunity to see how the process works, several times from the startup side, and more recently from the angel perspective (as a member of an angel group selection committee).

Entrepreneurs: Due Diligence on Investors is Smart

Gust

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. Taking on an investor is like getting married – the relationship has to work at all levels. Talk to other investors.

Start at the End - Your Exit Strategy - New Ventures BC Seminar Series

Angel Blog

It's the eve of the New Ventures BC Awards ceremony, and I've just posted the edited video of the last talk in this year's New Ventures Seminar Series: Start at the End - Your Exit Strategy. M&A exits are happening earlier than ever before. Angel group syndication.

Insights and Opinions: The Curse of a Modest Exit

Ask the Angels

For today’s Insights and Opinions article, we have an article from angel investor Steve Reich , who talks about the pros and cons of a modest exit in an investment. Blog Company Creation/Operation News Product/Technology Uncategorized Angel Capital Angel Groups Angel Investing Company Sale Economy Exit Strategies Exit Strategy Pasadena Angels Startup Companies Startups VC

An Angel Investor’s Thoughts on Valuation

Ask the Angels

Bob is a Director and long-time member of the Pasadena Angels, has been investing in early stage companies for 5 years, and has been held numerous “C” level positions at private and publicly traded companies. To set the stage, as an early stage investor, I look to invest in a “perfect storm” company. Not that it’s irrelevant or infeasible, just that early stage investments are generally more exit strategy centric. The investor ROI on this is 355%.

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