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How to Give Women the Wings of an Angel

Canada has not tapped its female angel investor potential – yet.

The female angel investor conversation has been discussed inside and out. From TechCrunch, BetaKit to the Financial Post, there have been more than a few arguments made about the lack of female representation in Canada’s early-stage investment community and the benefits of tapping into this financial resource.

For example,

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Trying to Raise Money? Thinking About Gust for Startup Fundraising?

How to Make Your Gust Account Stand Out to Investors

Before you read any further, I want you to know that I’ve personally used Gust to raise money for my first tech startup. I know a lot of other entrepreneurs who use or have used Gust to seek funds, but their profiles don’t always get attention from investors. Below are

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Is there an incubator for aspiring Angel Investors or VCs?

No, but there are several sets of courses on angel investing that can provide a good base from which to start. The most comprehensive and best known is the Power of Angel Investing seminar series developed by the Angel Resource Institute (formerly known as the Angel Capital Education Foundation, and prior to that part of the Angel Capital Association). It

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Of the private companies trading on secondary markets, how much of those companies’ stock is available through the secondary market?

On average…none.

The secondary market for private company stock is brand new, and so nascent that it is virtually nonexistent.

For a very brief time, when Facebook, LinkedIn, Groupon and Zynga were still private, there was a quick flurry of private secondary sales through platforms like SecondMarket and SharesPost. But there was much, much, much more smoke than fire, and

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Where can I find data relating to Angel Investment?

Unfortunately, none of this data exists. Period. The reasons are (a) there is no such thing as an “average” angel investor, and (b) there is currently no way to track the activities or record of individual investors.

That said, the rough ranges would be as follows:

Angel Group Syndication of Series A Rounds

Posted by on May 8th, 2013

US angel investors have been a robust source of seed stage capital for years.  More recently, we have experienced significant growth in the number of funded seed stage deals, due to the emergence of accelerators, super angels and new seed stage funds.  Unfortunately, we are now suffering a Series A startup funding crunch, that is, a lack of seed stage

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Convertible Debt is Bad For Angels

A couple of years ago, Paul Graham (Y Combinator) tweeted “Convertible notes have won. Every investment so far in this YC batch (and there have been a lot) has been done on a convertible note.”

The truth is convertible debt has not won.  Many sophisticated angel investors and angel groups refuse to invest in convertible debt in seed/startup deals.  Why? 

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Due Diligence Is A Two-Way Street

Investors regularly confuse entrepreneurs with their various approaches to validating deals prior to investment (a process called “due diligence”).   A few seed stage investors (angels, super angels or seed stage VCs) have coffee with an entrepreneur and quickly learn enough to write checks.  Other investors or groups of investors study deals for months before investing.  Why do some investors take

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Why Sweat Equity Often Stinks

Posted by on March 6th, 2013

Somebody asked for standard boilerplate for sweat equity via the ask-me page on my website.

I am looking for a contract template which states an agreement for services in exchange for equity. I was hoping that you would have a template that you can share.

That’s not going to happen. Fundamental sweat equity is beautiful, blisteringly clear, and real. It needs

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Raising Your Hand as Due Diligence Lead for Angel Groups

Through Rob Wiltbank’s ground-breaking study in 2007, angels in groups learned that collective due diligence on new deals really pays off.  The 538 angels included in this study enjoyed 2.6X returns over the life of their investments.  However, for deals on which collective due diligence totally less than 20 hours, returns were only 1.1X.  But, deals on which angel put

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