All Entries in the "Exits" Category
Easiest Way to Determine How Much to Allocate to Angel Investing
In Angel Investing as Asset Allocation Strategy: Risks, Returns, Homeruns, we reviewed why angel investing isn’t for the faint of hearts. The risks involved can be quite overwhelming. For the ambitious bunch, though, it’s difficult to resist the attractive payoffs offered by angel investing. If we want to tap into the lucrative potentials and make [...]
Angel Investing as Asset Allocation Strategy: Risks, Returns, Homeruns
Got ambitions for high-payoff potentials? Allocate a portion of your investable capital to angel investing, a form of alternative investments that offer high risk, high return opportunities. William S. Podd, executive director of Landmark Angels, suggests, “Angel investing, with its historical high risk/high reward strategy, can provide an opportunity for significant returns for high net [...]
John J. Maalouf: How to Select M&A Advisors
In Part 1, M&A Exits: Sell-Side M&A Process, we briefly discussed IPO and M&A exits for angel investors while John J. Maalouf, one of the “Nation’s Top 10 International Trade & Finance Lawyers,” walked us through the sell-side M&A process for a small fictitious company called AppleSoft, whose valuation lies below US$50 million. According to [...]
M&A Exits: Sell-Side M&A Process
Sophisticated investors always think about exits before they invest. “Does the company have the potential to go public or become an attractive acquisition target?” If not, they’d take their money elsewhere. Going public or IPO means the company raises money by offering stocks to the general public – you know, those stocks that anyone can [...]
2010 ACA Summit: Angels and VCs – Friend or Foe?
Thanks goes to Wall Street Journal‘s Russell Garland for taking us to the recent 2010 Angel Capital Association Summit in San Francisco and recounting how angels and VCs rivaled for the top spot. We all like a good scrum! According to Garland, attendees listened intently to speeches about the need for angel and VC harmony, [...]
Startup Acquisitions All Time High: Bloomberg Video with Mark Heesen
Quick Notes Venture capital investing is up 41% in the 1st quarter this year vs. a year ago Number of startup acquisitions is at an all time high Quantity and quality of acquisitions are good 14 to 15 IPOs in 1st quarter, compared to 18 IPOs in the last 2 years Quality of IPOs – [...]
Investing in SaaS Ventures (Part 2): Capital Requirements
A reader, Taliba M., recently told us she wants to invest in a SaaS startup but lacks expertise in this area. We suggested co-investing with an investor friend who has experience in this field, and learning the fundamentals of SaaS companies to make herself easy to teach. Read Effective Ways to Invest in the Unknown [...]
Angel Investing: Dilution Preventive Measures (Part 3)
This is Part 3 of our quest to answer a reader’s question on dilution. The reader writes – How do you prevent being washed out as you keep pro-rata and the numbers get increasingly bigger? Suppose you invest $200k for 25%. The venture then raises $5m, so to keep pro rata you do $1.25m of [...]
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. [...]
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 [...]
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