A savvy angel investor once told me that before he buys anything – whether it is a business, a house, stocks and bonds, or a lawn mower – he would first determine how he would sell it. Doing that is valuable for 2 reasons. First, it urges him to figure out whether the price of [...]
* This is not legal advice. Consult with your lawyer. Should angel investors care about Private Placement Memorandum (PPM)? Antoine Brand, a reader of Venture Hype, wondered. Since it’s a question asked by many an entrepreneur, we decided to look at both sides of the table and examine the role PPM plays in an investment [...]
This is Part 7 of an 8-part series on royalty or revenue-based investment. Please visit Part 1 for links to the entire series. You’ve seen 2 exit-dependent investment models used by equity investors and understood why some investors are exploring an investment vehicle, called royalty based investment (or “royalty based financing”), that doesn’t depend on [...]
This is a guest post by Christopher Grey, a contributor to TheStreet.com and the co-founder and CFO of CapLinked. Grey was a senior executive and partner in private equity, finance, and banking for 15 years. He was directly involved in the origination and management of billions of dollars of debt and equity investments. Other members [...]
Mark Suster of GRP Partners recently wrote about why it is probably not wise for super angels to dismiss or alienate VCs. As Suster points out, “It’s fun to have a villain – less fun when you need them.” Angel Investors and VCs Eat From the Same Trough Many angel investors in this day and [...]
This is Part 5 of an 8-part series on royalty or revenue-based investment. Please visit Part 1 for links to the entire series. So what are the main features that turn some investors into a huge fan of the royalty based approach? Let’s take a look. (Yes, we’ll go over the drawbacks later in the [...]
Thanks to the Bin 38 fiasco and the Valley’s hyperactive angel investing activities of late, industry participants were taken aback by the pessimistic findings in the angel market analysis report [PDF] for the first and second quarter of 2010, offered by the Center for Venture Research (CVR). Methinks it could be a “Chicken Little” threat [...]
Korean game maker YD Online just launched a mobile game that has the potential to evolve into a tool for identifying up-and-coming investments in the smart phone application sector. The game, appropriately named Angel’s Choice, allows the gamer to become a virtual angel investor for anything in the Apple App store inventory, according to VentureBeat. [...]
Another brilliant guest post by Rob Delman, a professional angel investor and the managing director at Golden Seeds in New York. He’s proud to be nicknamed the “Golden Dude” by his female forum mates. I have noticed a disturbing trend lately when listening to entrepreneur pitches at various angel investor forums. The investor has a [...]
This is Part 4 of an 8-part series on royalty or revenue-based investment. Please visit Part 1 for links to the entire series. “Startup funding is hooked on exits,” says Thomas Thurston, president of Growth Science International. Thurston is right. Equity investors are “exit junkies.” Exits are how they make money. But in the aftermath [...]