On the first day of Christmas
a founder sent to me:
A Financial Model error free Continue reading
Posted in Angel Groups, Angel Investing, Financial Models, Golden Seeds, Opinion, Uncategorized
Tagged Angel Investing, Angel Investor, Financial Modeling, Golden Seeds, Happy Holidays, Valuation, Women in Angel Investing
As an angel investor, I see lots of financial models, which range from the very simple to the extremely complex. I am often asked why I insist on seeing the actual model ( yes the excel not the pdf version) as it all based on layers of assumptions. In response, the financial model is nothing more than a quantitative expression of the business model and in fact what is most important to me are the assumptions that underlie the numbers. Continue reading
Posted in Angel Groups, Angel Investing, Financial Models, Golden Seeds, Opinion, Uncategorized, Venture Capital
Tagged Angel Investing, Angel Investor, cash flow, Early Stage Company Valuation, Financial Modeling, Funding, Golden Seeds, revenue models, Startups, Women Angels, Women Investor
Probably one of the things I have found that many of my fellow angel investors enjoy even less than analyzing the financial model of a company they are contemplating investing in (see my last post ) is diving into the Term Sheet. A term sheet is a document that lays out the key terms of a proposed investment. Once those key terms have been negotiated and the term sheet is executed by both parties, it serves as the basis for drafting the other documents which comprise the legal closing documents in a transaction.
At a recent meeting, one of colleagues made the comment that term sheets are like country western songs – you know those soulful ballads that bemoan the difficult breakup, the secrets never shared, the soulmate you trusted who walked away and left behind a pile of debt…… When you make an angel investment you are not only entering into a financial transaction, you are entering into a relationship with the CEO/founders/management team. If you have been investing in this sector for awhile, it is likely you have made at least one investment that did not turn out as planned! Another way to think about the term sheet is a kind of “pre-nup” for angel investing. Clearly if you don’t really believe that a particular investment has the potential to be a good partnership over time, you probably shouldn’t make the investment. Continue reading
Posted in Angel Groups, Angel Investing, Due Diligence, Financial Models, Golden Seeds, Opinion, Term Sheets, Uncategorized, Venture Capital
Tagged Alex Wilmerding, Angel Investing, Deal Economics, Early Stage Company Valuation, Exit Strategy, Follow-on Rounds, Golden Seeds, Term Sheets, Valuation, Women Angels
“I am a serial entrepreneur with a business idea that will generate $100 million in sales in 3 years!!!!” , sound familiar? As an angel investor, I meet many passionate entrepreneurs who present a very optimistic outlook for the future of their business concept. Building financial projection models is a very difficult process for the CEO of an early-stage company and an even more difficult process for the investor to believe in.
So, is there any real value in financial projections? Continue reading
Posted in Angel Groups, Angel Investing, Due Diligence, Financial Models, Opinion, Uncategorized
Tagged Angel Investing, Angel Investor, Early Stage Company Valuation, Exit, Financial Modeling, Golden Seeds, Investment, Investor, Valuation, Women Angels