Archive for November, 2009

Why are Angels Forming and Joining Angel Groups?

November 27 2009 No Commented

Why are Angels Forming and Joining Angel Groups? Angels have been investing in entrepreneurial ventures for centuries. But angels organized in groups are rather new. The first formal angel group (Band of Angels) was organized by Hans Severiens in Palo Alto, California in 1994. The rate of formation of angel groups has been an amazing phenomenon over the […]

Who are these angels?

November 20 2009 No Commented

Who are these angels? Wait a minute. Before describing why I think It’s a GREAT Time to be an Angel!, let’s level the playing field. Just what is an angel investor? Wealthy investors have been providing funding and advice to new entrepreneurs for thousands of years. In 1983, Professor Bill Wetzel at the University of New Hampshire recognized the […]

But…wait a minute…we are in the middle of a financial crisis!

November 20 2009 No Commented

But…wait a minute…we are in the middle of a financial crisis! So why is the middle of a pretty deep recession a GREAT Time to be an Angel? When many of us dust off our checkbooks these days to fund new ventures, we get some flak at home. The line goes something like this: “We just saw our […]

Valuations are down during this recession!

November 20 2009 No Commented

Valuations are down during this recession! The pre-money valuation of a new venture is the valuation just before an investor writes a check. The post-money valuation is the valuation of the startup just after investors checks are cashed for a given round of investment. Therefore: The pre-money valuation plus the invested monies equals the post-money valuation. The pre-money […]