Startup Professionals Musings

JULY 16, 2012

These are emerging group of professional investors (venture capitalists, ala VCs), who are investing from a fund of other people’s money, with a particular focus on seed-stage startup opportunities. Seed-stage means promising companies that don’t yet have a revenue stream, and may not yet have a proof of concept. Super Angels.

Early Stage 253

Early Stage Finance Seed Stage Entrepreneur 253

Startup Professionals Musings

OCTOBER 8, 2023

By definition, angels are accredited investors, who invest their own money for a percentage of the business. Every investor likes to see opportunities that are large, with double-digit growth. To be fundable, fifth year revenue projections need to be in the $20-$100 million range.

Accredited Investor 265

Accredited Investor Venture Capital Syndicate Syndication 265

Startup Professionals Musings

JANUARY 12, 2013

Sites like KickStarter have for years offered rewards and pre-sales for crowd investments, but real equity won’t be legalized until sometime this year for people other than accredited investors. Super-angels. Gamification. Startup pivot.

Entrepreneur 274

Entrepreneur Accredited Investor Silicon Valley Angel Investor 274

Scott Edward Walker

AUGUST 30, 2020

This past Wednesday, the Securities and Exchange Commission (SEC) adopted amendments expanding the definition of “accredited investor” to include individuals who hold certain professional certifications/licenses or have certain “credentials,” as determined by the SEC. Current Definition of “Accredited Investor”.

Accredited Investor 52

Accredited Investor SEC Securities and Exchange Commission Private Placement 52

Gust

JULY 8, 2012

These are emerging group of professional investors (venture capitalists, ala VCs), who are investing from a fund of other people’s money, with a particular focus on seed-stage startup opportunities. Seed-stage means promising companies that don’t yet have a revenue stream, and may not yet have a proof of concept. Super Angels.

Early Stage 177

Early Stage Finance Seed Stage Entrepreneur 177

Scott Edward Walker

NOVEMBER 2, 2011

Only raise funds from “accredited investors” (see post here ) and don’t pay anyone a commission for raising funds for you unless they are a registered broker-dealer (see post here ). Put proper privacy policies in place and make sure you adhere to them (see post here ).

Accredited Investor 111

Accredited Investor Stock Options Delaware Silicon Valley 111

Up and Running

SEPTEMBER 23, 2013

Previously, businesses seeking to raise capital were required to either pitch their plans exclusively to so-called accredited investors—individuals with at least $1 million in net worth (excluding their primary residence) or $200,000 in annual income—or offer a regulated security (such as stocks or corporate bonds).

Securities and Exchange Commission 77

Securities and Exchange Commission Accredited Investor United States .Net 77

Startup Professionals Musings

APRIL 25, 2016

Revenue and profit projections are not credible. Attractive businesses to investors may show revenues that double every year but don’t exceed the gross national product of your country. Investors do expect gross margins that exceed 50 percent, and double-digit penetration rates by the fifth year.

Intellectual Property 120

Intellectual Property Accredited Investor Angel Investor Reputation 120

VC Cafe

JULY 4, 2012

While they provide huge value to the ecosystem and increase the density of network amongst startup and angel investors, they don’t unlock new sources of funding and don’t face the barriers of equity crowdfunding when dealing with a large number of non-accredited investors.

Equity 160

Equity Europe Due Diligence Startup 160

Startup Professionals Musings

FEBRUARY 16, 2015

By definition, angels are accredited investors, who invest their own money for a percentage of the business. Every investor likes to see opportunities that are large, with double-digit growth. To be fundable, fifth year revenue projections need to be in the $20-$100 million range.

Angel Investor 120

Angel Investor Accredited Investor Venture Capital Startup 120

Growthink Blog

FEBRUARY 21, 2013

The passing of the JOBS Act also means you won't have to seek out accredited investors specifically (people with incomes of $200,000 or more, or a net worth of $1,000,000 or more-not including their residence). So, what's the latest? As mentioned above, equity based crowdfunding was supposed to go live on January 1st 2013.

Equity 74

Equity Securities and Exchange Commission SEC Accredited Investor 74

Berkonomics

AUGUST 3, 2023

Money from these sources is relatively easy to come by, and most often comes with no strings as to oversight by a formal board composed of these investors and management. Often private equity investors will want control of the business as well.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Berkonomics

JUNE 8, 2017

composed of these investors and management. However, most often, these funds are solicited by a well-meaning entrepreneur from investors who are not qualified as accredited investors under the law (currently requiring a proved income of $200,000 a year or $1 million in net worth for an individual investor).

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

Berkonomics

JANUARY 20, 2010

Money from these sources is relatively easy to come by, and most often comes with no strings as to oversight by a formal board composed of these investors and management.

Private Equity 69

Private Equity Valuation Cap Table Accredited Investor 69

Scott Edward Walker

OCTOBER 27, 2015

Only raise funds from “accredited investors” (see post here ) and don’t pay anyone a commission for raising funds for you unless they are a registered broker-dealer (see post here ). Put proper privacy policies in place and make sure you adhere to them (see post here ).

Intellectual Property 40

Intellectual Property Accredited Investor Vesting Delaware 40

thebarefootvc

JUNE 4, 2018

While our results could be an indication of bubbles, they are also consistent with high compensation for risk for investing in unproven pre-revenue platforms through unregulated offerings.”. We also study the determinants of ICO underpricing and relate cryptocurrency prices to Twitter followers and activity. Cryptoassets may be growing up….

Accredited Investor 40

Accredited Investor Boston Acquisition Sales 40

Venture Chronicles

MARCH 23, 2010

Over a 2 year period beginning with the date of visa issuance the entrepreneur has to create 5 full time jobs, raise an additional $1m in investment capital or generate $1m in revenue. Reading the text of the bill it is clear that this bill: takes existing visa and allocates them for the startup visa program.

Venture Capital 36

Venture Capital Accredited Investor Green Offshore 36

Hippoland

JULY 24, 2018

And if your fund does well – i.e. your companies either raise more money or they grow their revenues a lot – you also don’t make more money, because your salary is based on a percentage of your fund size. see point #4) 6) And you have a limited number of investors you can accept. You can’t throw in the towel.

Salary 48

Salary Capital Call Bootstrapping Cofounder 48

Hippoland

JULY 24, 2018

And if your fund does well – i.e. your companies either raise more money or they grow their revenues a lot – you also don’t make more money, because your salary is based on a percentage of your fund size. see point #4) 6) And you have a limited number of investors you can accept. You can’t throw in the towel.

Salary 48

Salary Capital Call Bootstrapping Cofounder 48

Startup Professionals Musings

AUGUST 12, 2013

It won’t help your case or your workload to do an email blast and follow-up with all eight million accredited investors in the US. Investors won’t fund people who don’t push the limits, or inversely won’t recognize business realities. Your fifth-year revenue projections better be between $20M-$100M.

Angel Investor 252

Angel Investor Accredited Investor Silicon Valley Venture Capital 252

Ben's Blog

MAY 24, 2021

Small” IPOs — companies with less than $50m in annual revenue at the time of IPO – have declined from more than 50% of all IPOs in the 1980-2000 timeframe to about 25% of IPOs from 2001-2016; Companies are staying private much longer — the median time to IPO from founding hovered around 6.5

SEC 36

SEC Accredited Investor IPO Technical Review 36

Startup Professionals Musings

DECEMBER 26, 2020

Startup revenues come later. The biggest surge in expectations occurred back in 2015, when the SEC “ democratized ” everyday citizens (non-accredited investors) to participate in equity crowdfunding. Don’t assume that any money collected from a winning campaign will go into your pocket.

Accredited Investor 378

Accredited Investor SEC Campaign Equity 378

Startup Professionals Musings

SEPTEMBER 11, 2023

Startup revenues come later. The biggest surge in expectations occurred way back in 2015, when the SEC “ democratized ” everyday citizens (non-accredited investors) to participate in equity crowdfunding. Don’t assume that any money collected from a winning campaign will go into your pocket.

Accredited Investor 252

Accredited Investor SEC Campaign Equity 252

View from Seed

SEPTEMBER 20, 2017

For example, our firm is an investor in Fig , a crowdfunding platform for video games with a model that combines individual backing with rewards and the opportunity for non-accredited investors to invest in obtaining a share of future revenues.

Accredited Investor 214

Accredited Investor Cloud Media Internet 214

Startup Professionals Musings

DECEMBER 16, 2015

Startup revenues come later. The latest surge in expectations is just now occurring, as the SEC has finally “ democratized ” everyday citizens (non-accredited investors) to participate in equity crowdfunding. Don’t assume that any money collected from a winning campaign will go into your pocket.

Accredited Investor 120

Accredited Investor SEC Campaign Equity 120

The Next Web

AUGUST 14, 2013

When we went out to raise money, we raised with only a couple thousand dollars in monthly recurring revenue. But we had a solid product, strong weekly revenue growth (10% week over week), and two distribution/marketing channels that were already paying dividends. What Does Traction Look Like? Traction is different for every product.

Founder 142

Founder Incubator Cofounder Accredited Investor 142

ReadWriteStart

AUGUST 16, 2019

” Before acquisition the then SeedInvest CEO Ryan Feit previously said , “With over 37,000 accredited investors, SeedInvest is by far the largest platform in terms of the number of high net worth investors. ” Platforms are changing; not all platforms are the same.

Artificial Inteligence 115

Artificial Inteligence Accredited Investor Startup SEC 115

Growthink Blog

AUGUST 9, 2012

The passing of the JOBS Act also means you won't have to seek out accredited investors specifically (people with incomes of $200,000 or more, or a net worth of $1,000,000 or more-not including their residence). You can receive funds from people of all income ranges, which makes the pool of potential investors MUCH bigger.

Equity 69

Equity Accredited Investor SEC .Net 69

Growthink Blog

DECEMBER 11, 2012

The passing of the JOBS Act also means you won't have to seek out accredited investors specifically (people with incomes of $200,000 or more, or a net worth of $1,000,000 or more-not including their residence). You can receive funds from people of all income ranges, which makes the pool of potential investors MUCH bigger.

Equity 103

Equity Securities and Exchange Commission SEC Accredited Investor 103