Angel Investing

A New Angel Investing Strategy

Dave Balter, the CEO of BzzAgent, founder of Smarterer, and an active angel investor has a guest post up on OnStartups about his approach to angel investing. It’s titled Shorter Flights at Lower Heights: The Right Way To Angel Invest and is definitely worth a read if you are an angel investor. I have a different strategy…

Looking for Angel Investors for a High Tech Venture?

Venture Hacks has a great list of high quality angel and seed investors.  I was recently added to the angel list (there goes the neighborhood) and join an active crew of angel and seed stage VC investors that currently includes Rob Go, Ariel Poler, Aaron Patzer, Jason Calacanis, Ho Nam, Georges Harik, Rob Lord, Andy…

Angels – Keep It Simple and Fair

Q: I have an angel investor that is asking me for full anti-dilution protection for the lifetime of their investment, along with a host of other economic terms including dividends.  They are putting in a small amount of money, but are insisting that "this is the way it is done."  This doesn’t seem right –…

How Do I Do Multiple Closings for an Angel Round?

Q: How do I do multiple closings on a single round work? In our case, we have an investor wishing to give us  headstart, certainly I imagine not an uncommon case in friend and family scenarios, though here we’d have multiple rounds of angels, without kicking up the gears to flush out a full seed…

I’ve Got Angels Who Want To Invest But Not Lead – Now What?

Q: I have several angels that say the want to invest but non of them wants to lead. In your experience: 1) Is this a "call option" strategy rather than a serious investment intent? 2) any thoughts on how to turn "co investors" into lead? or should I try to get a lead of this…

More Thoughts on Structuring an Angel Investment

I’m not a fan of convertible notes as the form of an angel investment.  When I’m making an angel investment, I much prefer to price the round and do a "light Series A" (simple terms, but still a preferred instrument.)  Basil Peters has a series of posts up on Angel blog that talks about the…

How An Angel Financing Works

Todd Vernon has today’s great post of the day titled Angel Financing.  Todd is the CEO of Lijit (one of our portfolio companies – if you are a blogger – go check it out) and just completely nails the different types of angel investors and the issues surrounding how an angel financing works.  This is…

What Happens If Convertible Notes Are Called By Angel Investors?

Q: Convertible notes are popular instruments for angel investors when a future VC round might occur. But, if it takes longer to get to the venture round than you thought (doesn’t it always?) what happens when the note comes due? Can one investor call the note and put you out of business? A:  (Jason).  Yes, technically…

How Good Angel Groups Work

David Cohen – the ringleader of TechStars – has a good post up titled Thoughts from the west out east, and vice versa.  Last week David was a guest speaker at the Northeast Regional Investor Conference held in Portsmouth, NH.  In addition to running TechStars, David is an active angel investor in Colorado and had a…

What Are The Appropriate Information Rights for Angel Investors?

Q:  I’m CEO of a venture backed startup. In addition to my VCs, I have about 20 angel investors from the Series A round. What is the appropriate way to handle information requests from smaller angel investors who want copies of my board presentations and monthly financials? These angels do not have information rights, but…