Sentences with phrase «because angel investors»

It's because angel investors provide this critical early stage capital, and are involved in so many more young companies, that I believe they are more important to entrepreneurs, and the economy, than traditional VC funds.

Because angel investors assume a great deal of risk by investing in early stage companies, applicants should be able to make a compelling case for a 10x or better return on investment within 5 years.

Historically, recessions have not affected them because angel investors and venture capital firms largely base valuations on the experience of the management team and the size of the opportunity, not the prevailing market conditions.

Not exact matches

Although it took four months for them to get approved for the loan, the funding was crucial in helping the founders get their business off the ground last August, especially because friends, family, banks, community lenders and angel investors had all turned them down.

«These industries are so antiquated, but nobody's approached them because it's very hard to dynamically change an industry or really innovate if you don't inherently use it and understand it at its core,» says Zak, who is also an angel investor in female - oriented condom startup Sustain.

That's because historically, access to investing in top small businesses and startups has been largely limited to well networked angel investors, and venture capital funds, all doing so via exclusive closed door deals.

Today, only the top tier venture firms and angel investors have access to many private offerings because there is no information available in the marketplace,» Eakin says.

Joining a big firm is a better life for an angel investor because, well, you do fewer deals at larger dollar amounts.

Ironically, the trend of companies raising less capital actually enhances the importance of the initial round buy - in (both because that initial buy - in becomes less diluted meaning the first round price was that much more important and because even if an angel wants to buy up more in later rounds they'll have less of a chance to do so; I also believe that along with the trend of companies raising less capital we're also seeing earlier and somewhat smaller average exits — also enhancing the value of initial round buy - ins as fewer investors are truly swinging for the proverbial fence).

Taking it from an investor perspective (not me, angels) I think it's totally unfair to see early angels invest, take more risk, help you get to the next level through both sweat & money, and then pay a higher price because the round had a convertible note with no cap.

I was once thinking about writing a blog post called «Is Reid Hoffman the Kevin Bacon of Silicon Valley» because it seemed that every angel / seed investor I knew looking at deals was shopping their deal to Reid and everybody wanted Reid's opinion before committing.

Unless the entrepreneur has a business idea on the order of «Son of Google,» most professional investors, including both VCs and serious angel investors, will not sign an NDA because they know that there is a strong likelihood that they will have seen the idea before and will likely see it many more times in the future.

Usually, angel investors demand a high return on investment because of the high risks involved.

Gary Lauder thinks that this outcome will be a direct result of an inequitable distribution of resources, because smaller companies tend to finance their innovations by pitching ideas to angel investors and venture capitalists, which necessarily involves sharing those ideas.