INDUSTRY INSIGHTS YOUR PEERS ARE READING
There are actually no angel investing ‘journals’ per se, because there simply are not enough active, professional angel investors to make a market. There are, however, quite a few blog posts on the subject, although most are written for an entrepreneurial audience, rather than angels themselves. One good place to start would be with Bill Payne’s book The Definitive Guide to Raising Money from Angels. Good luck with your investing! MORE
All Announcements Diversity Venture Capital Investing 500 Startups 500strong angel investing international founders Investing Investors southeast asia venture capital venture capital venture capital investingIn 2010, 500 Startups started as a new kind of venture capital firm in Silicon Valley with a contrarian belief that talent can come from anywhere in the world. MORE
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. With more money to invest per principal, venture capital has chosen to invest more money per round of investment. MORE
I tell those stories because angel investment is a hit business too. Statistics notwithstanding (my apologies to Rob Wiltbank, the world expert on angel investment statistics), it’s a business in which the rare big hit pays for all the failures. MORE
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. Power Pitches angel investment angel investors entrepreneurs entrepreneurship fundraising pitching startups venture capital MORE
This is a good time to reflect on my experience with locally based angel investment. I just finished with the fourth of our annual angel investment event for my local group based in Eugene and Corvallis, Oregon. I’ve been an investing member since the group — the Willamette Angel Conference , nicknamed (ugh) the WAC — started. . We try to make our investments as convertible debt. MORE
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. . VCs in NYC invested, on average, only $2.4 And, according to MoneyTree© for the first three quarters of 2011, the average invested in NYC Metro seed stage VC deals was even less. MORE
This is the third article in a series on what it takes to be a great angel investor (and why this should matter to entrepreneurs). I’d rather be Roger Ehrenberg with a thesis around data-centric companies and base my investment decisions on the skills I’ve developed in my career. MORE
Power Pitches angel investment angel investors entrepreneurs entrepreneurship fundraising pitching startupsAn “ elevator pitch ” is a concise, well-practiced description of your startup and your plan, delivered with conviction and enthusiasm, that your mother should be able to understand in the time it would take to ride up an elevator. Everybody knows about these, but few people seem to deliver a good one. MORE
This is the first of a six part series on different methods used by angel investors to arrive at pre-money startup valuations. Detailed descriptions will be published over the next few weeks: The Scorecard Method: This method compares the target company to typical angel-funded startup ventures and adjusts the average valuation of recently funded companies in the region to establish a pre-money valuation of the target. He has invested in more than 70 startup ventures. MORE
I believe the rise in angel investing is here to stay and the professionalization of this class (aka “super angels&# or “micro VC&# ) is a good thing for the VC industry and for entrepreneurs. Executive Summary. MORE
I began studying angel investing returns about 10 years ago as a result of a problem I couldn’t resolve: The investing world seemed certain that angel investors were rubes. Are angel investors just unwitting philanthropists or legitimate entrepreneurial investors? MORE
Things don’t always go exactly as planned in life or in angel investing. And just as in life, with angel investing, it pays to be prepared. So here are some thoughts on planning for the inevitable, and how to prevent catastrophes by fitting your angel investments into your estate plan from the beginning MORE
Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received. The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.” MORE
Most recently, the number of shareholders issue has arisen as Congress considers legalizing crowdfunding which may allow hundreds or even thousands of smaller investors to make equity investments in startups. If large amounts of capital are required for startup companies to dominate a market, then the preferences of larger investors, such as angels and venture capitalists should be paramount in importance to entrepreneurs. The angel group has one member of the board of directors. MORE
Investor Brian Cohen, a part of the New York Angels and author of What Every Angel Investors Wants You to Know outlines eight questions when looking at potential companies to invest in. Managing IP diligently may take effort and investment, but it can be well worth it. MORE
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. I don’t think most groups are locked in under all circumstances – for example, the one I’m a member of decided to jump straight to equity for one deal a couple of years ago, even though we generally assume our investment will be as convertible notes. MORE
Magazine devoted to the topic of de-mystifying angels and the early-stage investing process. My first piece was on the seismic forces which have slowly but profoundly re-shaped the early stage investing landscape. 7 Reasons Why Angel Investing Became Serious Finance. Discover the forces converging to make angel investment a serious source of capital for savvy, high-growth focused entrepreneurs. I’ve been contributing a column at Inc. MORE
? Early stage investing is an inherently risky way to invest. As angel investors, you need to be aware of the key risks you are taking with your investment The list of high level risks is long and includes financing risk, technical risk, and market risk. MORE
The reality is that results in angel investing tend to bifurcate: “Professional” angel investors, who are investing calmly, steadily, relatively-rationally, over a long period of time and with a strong knowledge of both investment math and early stage realities, tend to not only make money, but do quite well: the average return for a comprehensive, well-managed angel portfolio is between 25% and 30% IRR. MORE
It feels like there is more written about angel investing lately than ever before. This form of early-stage investing seems to be having its 15 minutes of fame. angel groups, I've watched and charted these market changes since the early 1990s MORE
It aims to increase the amount of meaningful innovations brought to the investing marketplace. Professionals agree that portfolio diversification is one of the most important aspects to successful investing , and many deep technology companies offer a means to branch out into other industries. MORE
This is the fourth article in a series on what it takes to be a great angel investor (and why this should matter to entrepreneurs). Markets like these are very kind to angel investors because you get taken out early and see a nice pop on your investment. MORE
Before Christopher joined the world of angel investing, he spent much of his early career as a corporate lawyer working in-house for a NASDAQ listed enterprise software company. MORE
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 concept is simply…since: Return on Investment (ROI) = Terminal (or Harvest) Value ÷ Post-money Valuation. (in in the case of one investment round, no subsequent investment and therefore no dilution). Anticipated ROI: Angel investing is risky business. MORE
One of the best parts about angel investing is all the great stories you gather over the years. MORE
? There are as many different approaches to angel investing as there are investors. Some investors will tell you they invest based on their gut. They like to invest in people and that initial meeting guides their decision-making process MORE
article in a series on what it takes to be a great angel investor (and why this should matter to entrepreneurs). I’m obviously only naming a small fraction of their investments since I don’t feel inclined to research them all and many other great venture firms have this kind of access. MORE
Spearhead asked me to write a post on angel investing when they first launched. Charlie Munger says investing requires a latticework of mental models. Here are 11 lessons for your angel investing lattice: If you can’t decide, the answer is no. Investing takes years to learn, but improves for a lifetime. Invest only in technology. Incentives make for bad investing advice. If you can’t decide on an investment, the answer is no. MORE
Another reality is that angel investors and venture capital groups almost never invest in a services-only company. Industry Experts angel investment execution startups tactics MORE
Assume you have the right factors to get angel investment: experienced team, good product-market fit, growth potential, defensibility, and a reasonable shot at a successful exit. This might seem awkward on this site, suggesting that you don’t want angel investment. But angel investment isn’t for everybody. So then, why not angel investment? Having investment makes you visible, in a spotlight. Investment increases risk. MORE
Jeff Fagnan , angel and venture capitalist, first money behind VentureHacks. the blurring of angel and venture. how the fundamental shift in velocity means traditional angel club methods are probably dead or in need of drastic evolution. Angel Investing Panel - Highlights - 201105 by fdestin. . Angel Investing - BoCoupAtlas Panel - 201105 by fdestin MORE
Every investment so far in this YC batch (and there have been a lot) has been done on a convertible note.” Unless the startup has been hoarding cash or investing it in hard assets in some unusual way, calling the notes won’t yield any proceeds to the investor. MORE
The dinner parties now are filled with self-righteous angel investors bragging about how many deals they are in on. They have marked-up paper gains propped up by an over excited venture capital market that has validated their investments. It was an investment management class. MORE
By Michael "Luni" Libes In the traditional world of early stage, Angel and VC investing, money is local. Studies show that over 80% of funding at Angel groups and Series A VCs goes to businesses in the same city/region as the funders. MORE
Great ideas are a dime a dozen. Living in the Boston/Cambridge area, we are surrounded by some of the most innovative researchers in the world working at institutions like MIT and Harvard. MORE
There are actually no angel investing ‘journals’ per se, because there simply are not enough active, professional angel investors to make a market. There are, however, quite a few blog posts on the subject, although most are written for an entrepreneurial audience, rather than angels themselves. One good place to start would be with Bill Payne’s book The Definitive Guide to Raising Money from Angels. Good luck with your investing! MORE
Angel Investors. $20 Super Angels. It is clear from this table that Friends and Family, Angel Investors and Venture Capitalists provide 95% of the capital for new ventures. Angel investments range from $100,000 to $1.5 MORE
Invested Interests angel investment convertible debt convertible note deal terms due diligence financials fundraising priced equity priced rounds tactics valuation valuations VCs venture capitalAn 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. MORE
Angel investors can’t help you, and most venture capitalists won’t be interested in contributing the first several million. Power Pitches angel investment angel investors entrepreneurs entrepreneurship execution fundraising market pitching product development shareholders startups venture capital MORE
This is the third article in a series on what it takes to be a great angel investor (and why this should matter to entrepreneurs). I’d rather be Roger Ehrenberg with a thesis around data-centric companies and base my investment decisions on my background. MORE
After you have successfully attracted angels or venture capital with your business case, your million dollar product idea, and you have a signed term sheet, there is still one more hurdle to overcome before investors write the check. MORE
This is the second article in a series on what it takes to be a great angel investor (and why this should matter to entrepreneurs). And we all know that Ron Conway is considered the savviest of angel investors and yet by definition not all of his investments succeed. MORE
Angel investors typically provide early-stage funding, while venture capital firms typically come in at later stages. Investments at this stage are typically called seed investments. Funding of $250,000-$1 million is available from angels, if you have credentials and have done the homework of a good business plan, financial model, and executive presentation. Lesser amounts remain in the angel realm. Angels may be less demanding, but typically add less value. MORE
angel investing Related Topics Venture Hacks
APRIL 17, 2019
Spearhead asked me to write a post on angel investing when they first launched. Charlie Munger says investing requires a latticework of mental models. Here are 11 lessons for your angel investing lattice: If you can’t decide, the answer is no. Investing takes years to learn, but improves for a lifetime. Invest only in technology. Incentives make for bad investing advice. If you can’t decide on an investment, the answer is no.
The Seraf Compass
JULY 17, 2019
? Early stage investing is an inherently risky way to invest. As angel investors, you need to be aware of the key risks you are taking with your investment The list of high level risks is long and includes financing risk, technical risk, and market risk.
The Seraf Compass
JULY 24, 2019
One of the best parts about angel investing is all the great stories you gather over the years.
The Seraf Compass
AUGUST 14, 2019
It feels like there is more written about angel investing lately than ever before. This form of early-stage investing seems to be having its 15 minutes of fame. angel groups, I've watched and charted these market changes since the early 1990s
The Seraf Compass
JUNE 12, 2019
? There are as many different approaches to angel investing as there are investors. Some investors will tell you they invest based on their gut. They like to invest in people and that initial meeting guides their decision-making process
The Seraf Compass
OCTOBER 30, 2019
Great ideas are a dime a dozen. Living in the Boston/Cambridge area, we are surrounded by some of the most innovative researchers in the world working at institutions like MIT and Harvard.
The Seraf Compass
JULY 31, 2019
Before Christopher joined the world of angel investing, he spent much of his early career as a corporate lawyer working in-house for a NASDAQ listed enterprise software company.
Both Sides of the Table
SEPTEMBER 15, 2010
This is the third article in a series on what it takes to be a great angel investor (and why this should matter to entrepreneurs). I’d rather be Roger Ehrenberg with a thesis around data-centric companies and base my investment decisions on the skills I’ve developed in my career.
Both Sides of the Table
SEPTEMBER 14, 2010
This is the second article in a series on what it takes to be a great angel investor (and why this should matter to entrepreneurs). And we all know that Ron Conway is considered the savviest of angel investors and yet by definition not all of his investments succeed.
Both Sides of the Table
NOVEMBER 14, 2010
The dinner parties now are filled with self-righteous angel investors bragging about how many deals they are in on. They have marked-up paper gains propped up by an over excited venture capital market that has validated their investments. It was an investment management class.
Both Sides of the Table
SEPTEMBER 19, 2010
article in a series on what it takes to be a great angel investor (and why this should matter to entrepreneurs). I’m obviously only naming a small fraction of their investments since I don’t feel inclined to research them all and many other great venture firms have this kind of access.
Both Sides of the Table
SEPTEMBER 14, 2010
This is the third article in a series on what it takes to be a great angel investor (and why this should matter to entrepreneurs). I’d rather be Roger Ehrenberg with a thesis around data-centric companies and base my investment decisions on my background.
Onevest
APRIL 1, 2015
By Michael "Luni" Libes In the traditional world of early stage, Angel and VC investing, money is local. Studies show that over 80% of funding at Angel groups and Series A VCs goes to businesses in the same city/region as the funders.
Gust
OCTOBER 25, 2011
Assume you have the right factors to get angel investment: experienced team, good product-market fit, growth potential, defensibility, and a reasonable shot at a successful exit. This might seem awkward on this site, suggesting that you don’t want angel investment. But angel investment isn’t for everybody. So then, why not angel investment? Having investment makes you visible, in a spotlight. Investment increases risk.
Both Sides of the Table
SEPTEMBER 14, 2010
I believe the rise in angel investing is here to stay and the professionalization of this class (aka “super angels&# or “micro VC&# ) is a good thing for the VC industry and for entrepreneurs. Executive Summary.
Both Sides of the Table
SEPTEMBER 16, 2010
This is the fourth article in a series on what it takes to be a great angel investor (and why this should matter to entrepreneurs). Markets like these are very kind to angel investors because you get taken out early and see a nice pop on your investment.
Gust
JANUARY 25, 2014
There are actually no angel investing ‘journals’ per se, because there simply are not enough active, professional angel investors to make a market. There are, however, quite a few blog posts on the subject, although most are written for an entrepreneurial audience, rather than angels themselves. One good place to start would be with Bill Payne’s book The Definitive Guide to Raising Money from Angels. Good luck with your investing!
Gust
MAY 22, 2012
This is a good time to reflect on my experience with locally based angel investment. I just finished with the fourth of our annual angel investment event for my local group based in Eugene and Corvallis, Oregon. I’ve been an investing member since the group — the Willamette Angel Conference , nicknamed (ugh) the WAC — started. . We try to make our investments as convertible debt.
Scratch Paper
OCTOBER 12, 2014
Magazine devoted to the topic of de-mystifying angels and the early-stage investing process. My first piece was on the seismic forces which have slowly but profoundly re-shaped the early stage investing landscape. 7 Reasons Why Angel Investing Became Serious Finance. Discover the forces converging to make angel investment a serious source of capital for savvy, high-growth focused entrepreneurs. I’ve been contributing a column at Inc.
500
DECEMBER 10, 2019
All Announcements Diversity Venture Capital Investing 500 Startups 500strong angel investing international founders Investing Investors southeast asia venture capital venture capital venture capital investingIn 2010, 500 Startups started as a new kind of venture capital firm in Silicon Valley with a contrarian belief that talent can come from anywhere in the world.
Gust
JANUARY 25, 2014
There are actually no angel investing ‘journals’ per se, because there simply are not enough active, professional angel investors to make a market. There are, however, quite a few blog posts on the subject, although most are written for an entrepreneurial audience, rather than angels themselves. One good place to start would be with Bill Payne’s book The Definitive Guide to Raising Money from Angels. Good luck with your investing!
Gust
OCTOBER 17, 2012
I began studying angel investing returns about 10 years ago as a result of a problem I couldn’t resolve: The investing world seemed certain that angel investors were rubes. Are angel investors just unwitting philanthropists or legitimate entrepreneurial investors?
Gust
OCTOBER 2, 2012
I tell those stories because angel investment is a hit business too. Statistics notwithstanding (my apologies to Rob Wiltbank, the world expert on angel investment statistics), it’s a business in which the rare big hit pays for all the failures.
propel(x)
DECEMBER 11, 2017
Investor Brian Cohen, a part of the New York Angels and author of What Every Angel Investors Wants You to Know outlines eight questions when looking at potential companies to invest in. Managing IP diligently may take effort and investment, but it can be well worth it.
Fred Destin
MAY 14, 2011
Jeff Fagnan , angel and venture capitalist, first money behind VentureHacks. the blurring of angel and venture. how the fundamental shift in velocity means traditional angel club methods are probably dead or in need of drastic evolution. Angel Investing Panel - Highlights - 201105 by fdestin. . Angel Investing - BoCoupAtlas Panel - 201105 by fdestin
The Seraf Compass
AUGUST 7, 2019
Things don’t always go exactly as planned in life or in angel investing. And just as in life, with angel investing, it pays to be prepared. So here are some thoughts on planning for the inevitable, and how to prevent catastrophes by fitting your angel investments into your estate plan from the beginning
Gust
DECEMBER 6, 2011
Angel Investors. $20 Super Angels. It is clear from this table that Friends and Family, Angel Investors and Venture Capitalists provide 95% of the capital for new ventures. Angel investments range from $100,000 to $1.5
Gust
AUGUST 16, 2012
The reality is that results in angel investing tend to bifurcate: “Professional” angel investors, who are investing calmly, steadily, relatively-rationally, over a long period of time and with a strong knowledge of both investment math and early stage realities, tend to not only make money, but do quite well: the average return for a comprehensive, well-managed angel portfolio is between 25% and 30% IRR.
Gust
OCTOBER 15, 2012
Invested Interests angel investment convertible debt convertible note deal terms due diligence financials fundraising priced equity priced rounds tactics valuation valuations VCs venture capitalAn 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.
Gust
OCTOBER 17, 2011
Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received. The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.”
Gust
OCTOBER 31, 2011
Another reality is that angel investors and venture capital groups almost never invest in a services-only company. Industry Experts angel investment execution startups tactics
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. . VCs in NYC invested, on average, only $2.4 And, according to MoneyTree© for the first three quarters of 2011, the average invested in NYC Metro seed stage VC deals was even less.
Gust
SEPTEMBER 5, 2012
Every investment so far in this YC batch (and there have been a lot) has been done on a convertible note.” Unless the startup has been hoarding cash or investing it in hard assets in some unusual way, calling the notes won’t yield any proceeds to the investor.
Gust
NOVEMBER 14, 2011
After you have successfully attracted angels or venture capital with your business case, your million dollar product idea, and you have a signed term sheet, there is still one more hurdle to overcome before investors write the check.
Gust
OCTOBER 11, 2011
Power Pitches angel investment angel investors entrepreneurs entrepreneurship fundraising pitching startupsAn “ elevator pitch ” is a concise, well-practiced description of your startup and your plan, delivered with conviction and enthusiasm, that your mother should be able to understand in the time it would take to ride up an elevator. Everybody knows about these, but few people seem to deliver a good one.
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. Power Pitches angel investment angel investors entrepreneurs entrepreneurship fundraising pitching startups venture capital
Gust
DECEMBER 5, 2011
Angel investors can’t help you, and most venture capitalists won’t be interested in contributing the first several million. Power Pitches angel investment angel investors entrepreneurs entrepreneurship execution fundraising market pitching product development shareholders startups venture capital
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. Detailed descriptions will be published over the next few weeks: The Scorecard Method: This method compares the target company to typical angel-funded startup ventures and adjusts the average valuation of recently funded companies in the region to establish a pre-money valuation of the target. He has invested in more than 70 startup ventures.
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. With more money to invest per principal, venture capital has chosen to invest more money per round of investment.
Gust
JANUARY 4, 2012
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. I don’t think most groups are locked in under all circumstances – for example, the one I’m a member of decided to jump straight to equity for one deal a couple of years ago, even though we generally assume our investment will be as convertible notes.
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 concept is simply…since: Return on Investment (ROI) = Terminal (or Harvest) Value ÷ Post-money Valuation. (in in the case of one investment round, no subsequent investment and therefore no dilution). Anticipated ROI: Angel investing is risky business.
Gust
JANUARY 5, 2012
Most recently, the number of shareholders issue has arisen as Congress considers legalizing crowdfunding which may allow hundreds or even thousands of smaller investors to make equity investments in startups. If large amounts of capital are required for startup companies to dominate a market, then the preferences of larger investors, such as angels and venture capitalists should be paramount in importance to entrepreneurs. The angel group has one member of the board of directors.
Gust
NOVEMBER 22, 2011
Angel investors typically provide early-stage funding, while venture capital firms typically come in at later stages. Investments at this stage are typically called seed investments. Funding of $250,000-$1 million is available from angels, if you have credentials and have done the homework of a good business plan, financial model, and executive presentation. Lesser amounts remain in the angel realm. Angels may be less demanding, but typically add less value.
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