Tag Archives: Portfolio Company

Angel Investing – Ringing in the New Year 2016

New Year 2016 conceptIt’s that time once again to reflect on the prior year and make some resolutions for the next. In last year’s post, I suggested that you develop your own investment strategy, take a closer look at the convertible notes in your portfolio and add some interesting reads to your list. Here are a few of my suggested resolutions for 2016: Continue reading

Angel Investing – Avoiding “Energy Vampires”

focus on solutions conceptEarlier this week, I was listening to an NPR program on “energy vampires”, those special individuals whose interactions can literally drain the energy from us.  The term “energy vampires” was coined by Dr. Judith Orloff, a clinical professor of psychiatry at UCLA in her book Positive Energy. Now everyone has had some experience with “energy vampires” – those special people who cause some of the following reactions:

  • You hope a call to them goes directly to voicemail
  • You need a trip to Starbucks before and after meeting with them
  • You would rather have a root canal  (the extreme version)

You get the point…… Continue reading

Angel Investing – Term Sheet “Control” Provisions

teamwork rowingIn a recent post I discussed the “economic” aspects of a term sheet. In addition to laying out the economics of a proposed transaction, the term sheet also provides a road map to various issues revolving around “control”.  As angels, although we are not involved in the day to day management of our portfolio companies, we need to have a voice in strategic issues that impact our portfolio companies. Typically this “control” is exercised either through: Continue reading

Angel Investing – What it’s all about

Collaboration concept in word tag cloudLast week I had the opportunity to attend the Golden Seeds Innovation Summit. During this annual event, CEOs from the Golden Seeds Portfolio Companies, Golden Seeds Members, LPs in the Golden Seeds Funds and guest speakers come together for two days in NYC. It is a venue for the CEOs to update current and potential investors about their companies and also to interface with one another, a powerful networking opportunity. In addition to hearing about the progress of our portfolio companies, members are able to attend sessions on topics including; positioning for exit, brand building, trends in various industry sectors, and many others.

To me, angel investing is so much  more than just writing a check, as I discussed in an earlier blog post. The ability to interface with our dynamic CEOs and to collaborate on investment opportunities with a great group of investors, like my colleagues at Golden Seeds, is “What it’s all about“. Each time I participate on a deal team, in addition to sharing my own expertise, I always learn something new. I follow my companies on Twitter and other social media venues and try to be a supportive “angel” (which means not trying to micromanage but being strategic with both advice and input). I feel extremely privileged to be a part of the Golden Seeds national network and look forward to investing with them in 2013.

Angel Investing – Valuation Methods

Question Gold Dollar CoinsFor those of use entering the world of angel investing with a background in evaluating publicly traded equities, the valuation process for this investment class can be a real challenge. PE multiples and comps are very difficult to apply to companies that are not only pre-earnings but in many cases pre-revenue. The earlier the life cycle of the company, the less data points exist to determine a reasonable valuation.

In this post, I will outline some of the valuation methods you may want to consider for evaluating these early-stage investments (Note: please click on the title links to learn more about these methods): Continue reading

Angel Investing – Follow-on Rounds

DecisionIn my last post, I discussed planning your angel investment strategy for 2013 and taking into consideration not only new portfolio additions but also participations in “follow-on” rounds emanating from your current portfolio. So how do you decide, if you have the option to invest, whether or not to participate in a “follow-on” round? When I am considering this question for my own portfolio, I first determine what type of “follow-on” round this investment opportunity represents. I use the following three categories: Continue reading

Angel Investing – Resolutions 2013

Ready for year 2013It’s a New Year and time to make those resolutions. In addition to thinking about personal goals for the year, it’s a great time to review your angel investment portfolio. As angels we see many interesting investment opportunities and it helps to set a goal at the beginning of the year for the investment amount that you want to commit to this sector over the next 12 months. When setting this goal take into consideration: Continue reading