Thoughts on startups by investors that
fund them & entrepreneurs that run them

Category Archives: Invested Interests

Should I give my seed investors anti-dilution protection?

What this investor is seeking is called “permanent, full-ratchet, anti-dilution protection”, and that is neither (a) in line with the market, nor (b) practical. Even if you were willing to give it to him, it is highly, highly unlikely to stand up beyond the next financing round, because there’s no way your next investor is going to take a dilution

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Crowdfunding: KickStarter, Indiegogo, AngelList, Gust: How to choose?

First, it’s important to understand that the four platforms you list fall into two very distinct groups.

Kickstarter and IndieGoGo are project-based crowdfunding platforms through which anyone can contribute money, either as a donation or with the promise that they will receive a tangible ‘reward’ of some kind if the project is successful.

Gust and AngelList are equity-based platforms, used by Accredited Investors  to facilitate the investment of money for an ownership interest in a company.

As such,

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What are the most common exits for Angel Investors?

Here, in a completely unsourced, purely anecdotal and totally subjective answer with numbers pulled out of the air, is my guess:

 *original post can be found on Quora @ http://www.quora.com/David-S-Rose/answers *

Is making Equity Crowdfunding available to all a good thing?

Part of the challenge is the enormous amount of ignorance surrounding this suddenly hot topic. There are thousands of companies that “the crowd” can fund without restriction, including Apple, Google and Facebook. These are “publicly tradable companies”, and what makes them so are the extensive rules surrounding disclosure, transparency, trading and other aspects of their corporate existence.

But since there are

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How do I get in touch with investors/funds with just an idea and no product?

There are many wonderful ideas, and they are not necessarily easy to come up with. So congratulations on having thought of one!

However…

“Having value” and “Being fundable” are two completely different things. What the more experienced responders here are saying is completely accurate: while a good idea is usually a necessary ingredient for the formation of a good company, it is not sufficient by itself

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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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Who is the most important person in a tech/web startup (visionary, programmer, etc.)?

Since Bill Hewlett joined with Dave Packard in 1939 to create what is today the world’s largest personal computer company, there has arisen an evergreen debate as to who is more important in starting a tech company: the techie or the business guy? Steve Jobs or Steve Wozniak? Bill Gates or Steve Ballmer? Jim Clark or Marc Andreessen?

I propose that

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Great Startups Are Where Soul and Technology Meet

MIT Chapel, Cambridge Mass via Wikipedia

Some entrepreneurs forget that they can’t use people the same way they use technology to build a startup. Inventors, for example, are skilled in manipulating technology, but may have little interest or experience engaging people to make an effective team. Unfortunately, startups are not one-man shows, so entrepreneurs need to study leadership as much

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What are the advantages of stationing your startup in New York City opposed to Silicon Valley / SF?

The world’s fastest growing tech startup ecosystem
A much more tightly knit startup community, compared to the larger but more diffuse West Coast community
Access to many, many more world market centers (advertising, finance, fashion, media, food, etc.)
A city that from the Mayor on down is devoted to helping the tech startup community expand exponentially
The world’s largest Tech Meetup (not to mention Meetup.com itself)
Significantly easier access

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How long does it take for investors to approve the idea and to grant the necessary investment?

The question is based on a misunderstanding of how venture capital investment works.

First of all, VC funds do not invest in ideas. What VCs invest in are operating  companies that are ready (or almost ready) to scale. There are many wonderful ideas, all of which are not fundable. Only companies get funded.

Next, VCs don’t have an unlimited amount of money that is

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