Historically our angel investment criteria have always focused on the ability of a management team to prove they can deliver on a high growth business concept. Our return on investment has been tied to the entrepreneur’s ability to produce the revenue and profit growth needed to create enterprise value. Our exit has always been seen [...]
I’ll admit to having a bias towards exits and focus my review of a potential investment on the exit potential. I do sometimes get impatient when the investment proposal has little or no information on the exit path. Even where an exit strategy is proposed, the descriptions demonstrate either limited information about what it will [...]
Over the last few years I’ve written extensively on strategic exits and encouraged Angel investors to concentrate their investments where a strategic exit is highly likely. I have focused on strategic value investments as I have found convincing evidence to show that these have higher ROI, shorter investment periods and lower execution risks. I have [...]
I recently reviewed a set of investment ready criteria published by a respected Angel Group (not the Pasadena Angels). All the usual factors were there–what problem was being sold, the extent of competitive advantage, the experience of the management team, size of market, etc. You could quickly infer from the questions that the objective was [...]
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Exit Alignment
The last thing we want as Angel investors is reluctance on the part of the Founder and/or the management team to pursue an exit, and yet we seem to put little effort into ensuring we all want the same outcome. Too many Angels focus on the near term issues without appreciating that even these decisions [...]