All Entries in the "Definitions" Category
Martin Zwilling of Startup Professionals: Angel Investing ABC
When it comes to startup advice for tech entrepreneurs, twitterati StartupPro (a.k.a. Martin Zwilling) will probably pop up your mind. Over the past 30 years, Zwilling has led technical business transformations, held a wide range of tech management roles, as well as done due diligence and funding analysis for investors. Though he does little investing, [...]
Angel Investing: Early Exits via M&As
According to The Deal, “M&A accounted for 70% of the angel investment exits [in 2008], while bankruptcies made up 26% and IPOs 4%.” In a down economy, valuations drop and some companies see it as an opportunity to snap up smaller competitors or to bargain-hunt for startups that are strategically valuable to the acquiring company. [...]
PEHub Alastair Goldfisher Part I: Intro to Private Equity
“Angel investing” is sometimes referred to as “private equity investing,” just like “angel investors” are sometimes referred to as “private equity investors.” But don’t confuse angel investing with private equity investing done by private equity firms/PE firms. Angels and PE firms invest differently, although both invest in private equities. Confused? Yah, we thought you might [...]
What the @#$ Is a “Down Round”?
The year is 1999. The economy is hot and full of excitements and opportunities. Promising dot-coms are popping up in the blink of an eye. The startup your buddy Ken invested in quickly attracted venture capital and on it went to the IPO wonderland. Ken is handing out cigars and telling you his success stories. [...]
What the @$#! Are GAAP and IFRS?
Relax. Let me explain — Have you ever compared nutrition facts between two grocery products? Although it’s getting better, it continues to be a challenge as each company measures and labels their “suggested servings” and other nutritive facts differently. It can be even more confusing when comparing the financial statements of companies, which is why [...]
What Is a Syndicated Investor?
You’re facing an angel investor’s dilemma. You’ve looked at proposal after proposal from early stage startups and finally, you found one. You feel it in your gut; after spending countless hours reviewing the deal, you believe that this company is on solid ground, and you want in. So where’s the dilemma? This startup needs more [...]
What Is “Seed” Money?
One reader asked via email: What exactly is a “seed” company? What about “seed” capital? Startups, Philosophers and Seeds Go figure – it took a 19th century poet and philosopher to capture the thought process of a 21st century angel investor making a financial commitment at the seed stage of a technology startup. Henry David [...]
Differences Between an Angel Investor and a Venture Capitalist
One reader asked via email: I am interested in becoming a full-time investor and am learning the ropes. What are the differences between an angel investor and a venture capitalist? It seems like they are doing the same thing, more or less …
The Art of the Buyout: Or How to Collect Your Money
One of my favorite scenes of the 1983 Monty Python classic “The Meaning of Life” comes in the very beginning. In fact, the scene is technically a whole separate mini-movie unto itself. It’s about the Permanent Assurance Company, which is depicted as a boardroom full of very old, crotchety men. The gist of the story [...]
Are You a Drive-by Investor?
Ceding control to an entrepreneur only when pigs fly or when hell freezes over? In that case, drive-by deals aren’t for you. In a drive-by deal, venture investors fund at the mezzanine / late stage of a company. They’re interested in a quick exit and take little to no role in managing and monitoring the [...]
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