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The Truth About Early Stage Pre-Money Valuations

By Al Schneider I think there are three fundamental truths regarding the valuation of early stage businesses by potential investors: The first is that a pre-money valuation is ultimately an outcome of negotiation, rather than a mathematical calculation of discounted cash flow or any other metric of potential company performance. The second is that, despite [...]

Business Basics-Investor Presentation Checklist

by Robert Aholt When you are presenting to potential investors it is imperative that your presentation answers all the questions listed below: √ What product will you be selling? — explain your concept and the sales/manufacturing/distribution processes √ What are the advantages provided by your service, and how does that benefit the buyer? — we’re  looking for [...]

Whats Hot-Disconnect- Web companies valuations vs. current economy

By Chris Wadden As an angel investor I have spent the last 3 years advising companies to be reasonable about their valuation for their A round. This is an incredibly important and contentious decision (setting the bar) for both the entrepreneur and the investor at this stage of the company. Investors point out current economic [...]

AngelList – Santa Never Sleeps

A somewhat briefer post today about a group I recently joined called AngelList. The essence of what they’ve done is to create a worldwide community of angel investors, connecting them with startups looking for funding through a curated email distribution list of investors.  If your company is putting together an angel round, including one that’s [...]

Have a Look Inside an Angel’s Brain

As Angel investors, we like to see entrepreneurs with a laser-like focus on themselves, their venture, and fundraising. However, there are times when that single-mindedness can work to their disadvantage. With startups, fundraising is usually the most formidable challenge, whether the money comes from Angels, VCs, or other sources. Over the years I’ve seen many [...]