All Entries in the "Exits" Category

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 that round. Then [...]

Between Hell and a Homerun: One Angel’s Guide

Well before any money is put into a business, angels review how the business might succeed (or fail) and make their determination from that. They might also consult the stars, bones, tea leaves, an ancient shaman, and perhaps 1-800-PSYCHIC. They want to know:

How will the business do
What will come of their investment

In short, angels peer [...]

Tech Startups: Exit Early via M&As

You attended a cocktail party with your friend Kenny, a seasoned angel who’s flexing his wings. During meet-and-greet Ken was approached by Jan, an upbeat entrepreneur who managed to pull off a pitch with near perfection. Ken dug her vision, energy, and character. He asked Jan, “What’s your ideal exit?” To which she replied, “Ideally, [...]

How the @#$ Do I Cash Out?

A couple of years ago I was traveling on a business trip and landed at a large airport in an unfamiliar city. I left the plane, entered the terminal, but was unable to find my way out of the building. Every turn brought me into a new wing of the convoluted airport and no door [...]

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 [...]