Archive for December, 2009

Selecting The Right Employees and Building Strategic Partnerships Wisely

December 28 2009 No Commented

Karen Rands, during her Compassionate Capitalism show will engage her featured guests on a topic important to all start up and growing companies. When a start-up founder realizes he or her needs to build a team, bring on expertise to compliment their own skills how can they identify those people, confirm they will enhance their […]

Passive vs Active Angel Investing

December 28 2009 No Commented

John Tozzi has a post on Business Week’s Small Biz blog regarding the trend of an increase in angel funds. I think one reason for this trend is a result of some Angel Investors who are excited by the idea of investing in startups, but are not able to dedicate the time to be an […]

When is Convertible Debt the Right Instrument for Angel Investments?

December 24 2009 No Commented

When is Convertible Debt the Right Instrument for Angel Investments? In my last post, I concluded that convertible debt securities are seldom appropriate for angel investments.  My primary conclusion was that using convertible debt was likely to substantially reduce the ROI of “smash hits,” those 7% of angel investment that provide 75% of our ROI. […]

Angels: Convertible Debt Is Seldom the Right Security for Startup Investments

December 23 2009 No Commented

Angels:  Convertible Debt Is Seldom the Right Security for Startup Investments Just after the Internet bubble burst in 2001, many of us angels were “crammed down” unmercifully by subsequent investors in our portfolio companies.  These new investors were funding our companies at valuation far below the pricing we had agreed to earlier, resulting in substantial […]

Some Angel Groups are Beginning to Use Standardized Term Sheets

December 21 2009 No Commented

Some Angel Groups are Beginning to Use Standardized Term Sheets Until the mid-‘90s, the quality and consistency of term sheets offered by angels to entrepreneurs varied considerably.  Some were sophisticated while most were not – as if written on the back of an envelope.  Angels and entrepreneurs did other deals with only a hand-shake – […]

Due Diligence Pays Off for Angels in Groups

December 18 2009 No Commented

Due Diligence Pays Off for Angels in Groups I’ve been asked for thirty years if due diligence on angel deals really pays off.  Are we angels better served spending substantial time with entrepreneurs before investing or should we simply to throw darts at a list of deals to pick companies in which we invest?  Frankly, […]

Watch Bill – INC 500 Conference Interview – 2006

December 15 2009 No Commented

Is a Respectable ROI an Achievable Metric for Angels?

December 14 2009 No Commented

Is a Respectable ROI an Achievable Metric for Angels? I’ve been funding startups as an angel investor since 1980 without having a good answer to this question.  Early stage VCs seem to earn over 20% IRR (annual internal rate of return), so my thought has been that angels should earn even more.  After all, we […]