Archive for the 'Angel Investors' Category

Interview WBJ – A Wealth of Experience

May 20 2011 No Commented

I was interviewed early this month by Gareth Price of the Warsaw Business Journal about my experiences as an entrepreneur and angel investor, and about what angels look for in fundable deals.  See link.

Are Larger Opportunities More Risky Than Smaller Ones?

May 10 2011 No Commented

The skewed returns for angel investments report by Rob Wiltbank in 2007 for the US and in 2009 for the UK describe a clear strategy for angel investors:   [1] diversity* – invest in a large number of deals (ideally 25 or more) and [2] scalability – invest only in deals that can scale valuation rapidly […]

Angel-Fundable Startup Companies

May 1 2011 No Commented

What do angels look for in new investments?  Read my recent column:   Angel-Fundable Startup Companies in the Flathead Beacon.

Valuations – Higher in Silicon Valley, Seattle and Boston than for the Rest of US

April 15 2011 No Commented

As I reported last week (Current Pre-money Valuations of Pre-revenue Companies), I met with a group of 40-50 angel leaders to discuss the valuation of seed/startup angel deals at the Angel Capital Association Summit in Boston, April 4-6, 2001.  We reviewed a survey of angel groups all over the country completed last summer (included in […]

The Liquidation Preferences Debate

March 16 2011 No Commented

The terms and conditions under which angel investors fund startup entrepreneurs are defined by non-binding term sheets.  Liquidation preferences are a commonly negotiated term and come in several flavors: 1X non-participating liquidation preference – At exit, this preference give investors the option of getting their money back or participating pro rata in the exit with […]

Startup Valuations: The Risk Factor Summation Method

February 27 2011 No Commented

The Risk Factor Summation Method the fifth methodology for estimating the pre-money valuation of pre-revenue companies we have described in recent posts.  Readers may have noted that both the Scorecard Method and the Dave Berkus Method considered a narrow set of important criteria for investment in arriving at a pre-money valuation.  The Risk Factor Summation […]

Startup Valuations: The Cayenne Valuation Calculator

February 19 2011 9 Commented

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 High Tech Startup Valuation Estimator is an online tool developed by Cayenne Consulting to assist entrepreneurs and investors in estimating the pre-money valuation of startup enterprises.   This calculator uses […]

Startup Valuations: The Dave Berkus Method

February 14 2011 No Commented

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.  Dave Berkus is a founding member of the Tech Coast Angels in Southern California, a lecturer and educator.  He has invested in more than 70 startup ventures.   Dave’s valuation model […]

Due Diligence Is So NOT Yesterday!

February 9 2011 No Commented

VentureHype just published an interview of Bill Payne in which he describes the value of due diligence to investors and comments that angel investors outside Silicon Valley continue to believe that due diligence is critical to their success.

The Elephant in the Room

January 25 2011 one Commented

In a recent discussion in Vancouver, Basil Peters and I discussed the fact that many angels are not making money on their portfolio of startup ventures.  Then, our friend Frank Peters, host of The Frank Peters Show, invited Basil, Mark Skaist and me to discuss this topic on his show.  This led to a discussion […]