Author Archive

What would be Reasonable Convertible Debt Deals for Angels

March 6 2014 No Commented

  I have written blogs on why I don’t invest in seed/startup stage deals using convertible debt instruments.  See: Angels: Convertible Debt Is Seldom the Right Security for Startup Investments and When is Convertible Debt the Right Instrument for Angel Investments? I was recently asked to quantify under what terms and conditions I might be […]

“If you’ve got a business — you didn’t build that. Somebody else made that happen.”

August 17 2012 No Commented

Title is quote from Barack Obama, speaking in Roanoke, Va., July 13, 2012 Are you kidding me?  What a silly, uninformed statement to make!  Wouldn’t you think that one of the jobs of the President of the US is to encourage those whose companies create most of the jobs in our country? 1.  He assumes […]

Visiting Angels and Entrepreneurs in Northern Europe

June 19 2012 No Commented

My wife, Ann, and I visited Ireland, Russia, Estonia and Finland, from mid-March to mid-April (2012), sharing experiences in angel investing through lectures, discussions and workshops.  We met passionate entrepreneurs with exciting startup companies and engaged angels investors in all four countries. Ireland Upon arriving in Dublin, we were met by our hostess, Diane Roberts, […]

The Road to Crowdfunding Hell

June 19 2012 No Commented

It is remarkable to me the lack of rational analysis about equity crowdfunding.  Sure, crowdfunding “sounds like” an easy source of capital for startup entrepreneurs, leading to happy entrepreneurs, delighted investors and job creation galore.  Few pundits seem to have the depth of knowledge and foresight to look far enough down the equity crowdfunding road […]

The Berkus Method: Valuing an Early Stage Investment

March 27 2012 No Commented

Dave Berkus has just published the most recent version of his method for establishing a pre-money valuation for early stage companies.  See his blog at The Berkus Method: Valuing an Early Stage Investment

Southwest Angel Summit – April 1-2, 2012

March 12 2012 No Commented

If you angels can fit April 1st and 2nd into your busy schedules, here is a dynamite meeting annually held in Tucson and hosted by the Desert Angels:  http://southwestangelsummit.org/.  I have attended in the past and would be there this year, if I could.  

Follow-on Funding: A Dilemma for Angel Investors

February 12 2012 No Commented

In 2007, Professor Rob Wiltbank reported in Returns to Angel Investors in Groups that angel investors made follow-on investment in about 30% of their invested companies. It was surprising for me to learn that follow-on investments correlated with lower returns, that is, angels that made follow-on angel investments saw returns of 1.4X their investment, while […]

Average Round Size in Angel Deals

February 3 2012 No Commented

The Center for Venture Research at the University of New Hampshire has been publishing statistics on angel investing for decades.  Over the past several years, the numbers of US companies funded by angel investors has increased from about 50,000 per year to over 60,000 annually.  Based on CVR reports, Mark Boslet of senior editor with […]

Protecting IP in Crowdfunded Deals

January 25 2012 No Commented

Angels and venture capitalists will not sign non-disclosure (confidentiality) agreements just to listen to an entrepreneur’s funding presentation, or even to read the entrepreneur’s business plan.  Serial entrepreneurs understand this and write their plans without describing the “secret sauce.”  Investors will eventually want to validate the intellectual property (IP) prior to investing but not just […]

A Bubble for Seed Stage Valuation

January 19 2012 one Commented

When entrepreneurs raise equity capital for startup companies, the investors’ percentage of ownership is determined by the negotiated valuation for the company at the time of investment.  For example, if the negotiated pre-money valuation is $1.5 million and the investors provide $500,000 in equity investment, the investors are purchasing 25% of the company [$0.5 million […]