Comments for Angel Investor - Bill Payne & Associates http://billpayne.com Enabling Entrepreneurs Wed, 22 Feb 2012 06:24:57 +0000 hourly 1 http://wordpress.org/?v=3.3.1 Comment on Financing Startups – A New Workshop for Entrepreneurs by www.Zune.Net/Setup http://billpayne.com/2011/04/22/financing-startups-a-new-workshop-for-entrepreneurs.html/comment-page-1#comment-637 www.Zune.Net/Setup Wed, 22 Feb 2012 06:24:57 +0000 http://billpayne.com/?p=820#comment-637 Hi buddy, your blog's design is simple and clean and i like it. Your blog posts are superb. Please thick them coming . Greets! Hi buddy, your blog’s design is simple and clean and i like it. Your blog posts are superb. Please thick them coming . Greets!

]]> Comment on Startup Capital: Feast or Famine? by admin http://billpayne.com/2011/12/11/startup-capital-feast-or-famine.html/comment-page-1#comment-636 admin Sun, 19 Feb 2012 15:14:49 +0000 http://billpayne.com/?p=904#comment-636 Hi Donnell- Grants are essentailly free money, some of which require the grantee to perform tasks and report outcomes to the granting agency. Loans usually require repayment plus interest. Hope this was helpful. Bill Hi Donnell-
Grants are essentailly free money, some of which require the grantee to perform tasks and report outcomes to the granting agency. Loans usually require repayment plus interest. Hope this was helpful.
Bill

]]> Comment on Startup Capital: Feast or Famine? by Donnell Rulapaugh http://billpayne.com/2011/12/11/startup-capital-feast-or-famine.html/comment-page-1#comment-635 Donnell Rulapaugh Sun, 19 Feb 2012 01:27:54 +0000 http://billpayne.com/?p=904#comment-635 Whats the difference between a government grant and a loan? Whats the difference between a government grant and a loan?

]]> Comment on Startup Valuations: The Venture Capital Method by admin http://billpayne.com/2011/02/05/startup-valuations-the-venture-capital-method.html/comment-page-1#comment-631 admin Thu, 16 Feb 2012 15:48:30 +0000 http://billpayne.com/?p=778#comment-631 Hi Carlos- Thanks for your inquiry. Some time ago, I linked to some good fundamental materials on Valuation. Please search my website for "Kevin Learned". A blog will be the only citation and that blog has links to four articles explaining valuation to entrepreneur. Good luck! Bill Hi Carlos- Thanks for your inquiry. Some time ago, I linked to some good fundamental materials on Valuation. Please search my website for “Kevin Learned”. A blog will be the only citation and that blog has links to four articles explaining valuation to entrepreneur. Good luck! Bill

]]> Comment on Startup Valuations: The Venture Capital Method by Carlos http://billpayne.com/2011/02/05/startup-valuations-the-venture-capital-method.html/comment-page-1#comment-630 Carlos Thu, 16 Feb 2012 13:46:41 +0000 http://billpayne.com/?p=778#comment-630 What is the pre-money valuation used for? To be used as a metric for selling the startup outright even before seed financing? For the Angel to ensure that the startup is worth more than the seed investment being asked for? Please elaborate. Regards, Carlos What is the pre-money valuation used for? To be used as a metric for selling the startup outright even before seed financing? For the Angel to ensure that the startup is worth more than the seed investment being asked for? Please elaborate.

Regards,
Carlos

]]> Comment on Crowd Funding – A Critique for Entrepreneurs and Investors by admin http://billpayne.com/2011/11/25/crowd-funding-%e2%80%93-a-critique-for-entrepreneurs-and-investors.html/comment-page-1#comment-625 admin Sun, 12 Feb 2012 00:02:45 +0000 http://billpayne.com/?p=895#comment-625 Hi Dave- Thanks for your thoughtful post. I have written four posts on this subject, but still not a prolific as are you. Still...please check them out. (www.billpayne.com, search for "crowdfunding") I think you will find that my objections to crowdfunding for lifestyle companies is minimal and fraud is only one of many negatives I see to crowdfunding. However, for high growth companies who will need to raise substantial additional capital (after crowdfunding), I see major concerns to angels and VCs. Two of those are managing hundreds of investors (angels and VCs both tend to avoid companies with lots of investors) and managing IP. Will crowdfunding sources put up cash with no understanding of the IP? Will entrepreneurs want to manage 100s of NDAs? I think not. (Both IP and #s of investors is covered in subsequent posts.) Thanks again, for weighing in! Bill Hi Dave- Thanks for your thoughtful post. I have written four posts on this subject, but still not a prolific as are you. Still…please check them out. (www.billpayne.com, search for “crowdfunding”)
I think you will find that my objections to crowdfunding for lifestyle companies is minimal and fraud is only one of many negatives I see to crowdfunding. However, for high growth companies who will need to raise substantial additional capital (after crowdfunding), I see major concerns to angels and VCs. Two of those are managing hundreds of investors (angels and VCs both tend to avoid companies with lots of investors) and managing IP. Will crowdfunding sources put up cash with no understanding of the IP? Will entrepreneurs want to manage 100s of NDAs? I think not. (Both IP and #s of investors is covered in subsequent posts.)
Thanks again, for weighing in!
Bill

]]> Comment on Crowd Funding – A Critique for Entrepreneurs and Investors by Dave http://billpayne.com/2011/11/25/crowd-funding-%e2%80%93-a-critique-for-entrepreneurs-and-investors.html/comment-page-1#comment-623 Dave Sat, 11 Feb 2012 22:17:15 +0000 http://billpayne.com/?p=895#comment-623 This is a very informative article, thank you. However, I disagree with your summary. First, crowdfunding is not "an easy and fast way to raise startup capital". I have interviewed several companies that have executed crowdfunding campaigns in the US (example: http://fundinglaunchpad.com/2012/02/vanilla/) and abroad (example: http://fundinglaunchpad.com/2012/02/hugo/) and successfully raising money through crowdfunding is a lot of work. However, the rewards to businesses, the economy, and consumer investors will, on average, be much more positive than you propose. You suggest such investing should be left "to those with both the experience in validating such investment" to which I ask how those experts did after analyzing and carefully placing their money with Bernie Madoff. Or Enron or Tyco or countless other examples. Bank loans, angel investors, and venture capital is not available to most viable businesses. While if structured properly, investment crowdfunding will help some businesses become angel or VC ready. Here is what I think will happen once investment crowdfunding is finally legal? http://fundinglaunchpad.com/2012/02/impact/ This is a very informative article, thank you. However, I disagree with your summary.

First, crowdfunding is not “an easy and fast way to raise startup capital”. I have interviewed several companies that have executed crowdfunding campaigns in the US (example: http://fundinglaunchpad.com/2012/02/vanilla/) and abroad (example: http://fundinglaunchpad.com/2012/02/hugo/) and successfully raising money through crowdfunding is a lot of work.

However, the rewards to businesses, the economy, and consumer investors will, on average, be much more positive than you propose. You suggest such investing should be left “to those with both the experience in validating such investment” to which I ask how those experts did after analyzing and carefully placing their money with Bernie Madoff. Or Enron or Tyco or countless other examples. Bank loans, angel investors, and venture capital is not available to most viable businesses. While if structured properly, investment crowdfunding will help some businesses become angel or VC ready.

Here is what I think will happen once investment crowdfunding is finally legal? http://fundinglaunchpad.com/2012/02/impact/

]]> Comment on Angel Group Deal Flow Statistics by admin http://billpayne.com/2010/02/22/angel-group-deal-flow-statistics.html/comment-page-1#comment-608 admin Wed, 25 Jan 2012 16:09:24 +0000 http://billpayne.com/?p=385#comment-608 Hi Alan - Let me see if I can do justice to your questions: 1. How many companies seek a first round of investment in a typical year? Angels are funding 50,000 to 60,000 companies per year (J. Sohl, U of NH). 40% are seed/startup stage, 60% are early or growth stage. At least half are receiving their first round of angel financing. 2. How many rounds of angel investment do companies raise before an institutional round? This is a two-part question: Typically, companies raise 2-3 rounds of angel capital. Some raise more, some achieve positive cash flow with 1-3 rounds, some raise venture capital. BUT, very few angel funded companies raise venture capital. About 1000 companies raise their first round of institutional money each year, while angels probably fund 30,000 companies per year. So, you can see, the statistics suggest that VC funding is rare for angel funded companies. Hope this help! Bill Hi Alan – Let me see if I can do justice to your questions:
1. How many companies seek a first round of investment in a typical year? Angels are funding 50,000 to 60,000 companies per year (J. Sohl, U of NH). 40% are seed/startup stage, 60% are early or growth stage. At least half are receiving their first round of angel financing.
2. How many rounds of angel investment do companies raise before an institutional round? This is a two-part question: Typically, companies raise 2-3 rounds of angel capital. Some raise more, some achieve positive cash flow with 1-3 rounds, some raise venture capital. BUT, very few angel funded companies raise venture capital. About 1000 companies raise their first round of institutional money each year, while angels probably fund 30,000 companies per year. So, you can see, the statistics suggest that VC funding is rare for angel funded companies.
Hope this help!
Bill

]]> Comment on Angel Group Deal Flow Statistics by Alan http://billpayne.com/2010/02/22/angel-group-deal-flow-statistics.html/comment-page-1#comment-607 Alan Wed, 25 Jan 2012 04:31:16 +0000 http://billpayne.com/?p=385#comment-607 Bill, In an "average" year, approximately how many companies seek a first round of angel investment? How many rounds of angel investment would the "average" company seek before advancing to an institutional round? I am attempting to size the angel deal flow in the US. Thanks in advance for any assistance or answers you could offer. Bill,

In an “average” year, approximately how many companies seek a first round of angel investment?

How many rounds of angel investment would the “average” company seek before advancing to an institutional round?

I am attempting to size the angel deal flow in the US.

Thanks in advance for any assistance or answers you could offer.

]]> Comment on 2011 Valuation Survey of North American Angel Groups by admin http://billpayne.com/2011/10/08/2011-valuation-survey-of-north-american-angel-groups-3.html/comment-page-1#comment-606 admin Tue, 24 Jan 2012 16:51:37 +0000 http://billpayne.com/?p=891#comment-606 Thanks for your feedback! I certainly agree that a cut by industry would be useful, but I must tell you that the database will be much more skinny and difficult to obtain. This is a one-person, volunteer effort. Nonetheless, the 2012 survey will add a few angel groups, a few seed/stage VCs and give investors the opportunity to input data for multiple business verticals. I intend to continue to focus on the pre-revenue stage of development. Thanks for your feedback! I certainly agree that a cut by industry would be useful, but I must tell you that the database will be much more skinny and difficult to obtain. This is a one-person, volunteer effort. Nonetheless, the 2012 survey will add a few angel groups, a few seed/stage VCs and give investors the opportunity to input data for multiple business verticals. I intend to continue to focus on the pre-revenue stage of development.

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