Startup Business Plan

Corporate Governance Requirements For Angel Investors

Angel Investing is inherently risky. Startups, in general, aren't for the weak at heart. It is even more perilous when investing with minimal leverage that comes with a small investment of $25 - $50 thousand. Over a 10 year period, I made 7 investments that returned 180 percent. Over the same period of time, the S&P returned 250 percent. Yes, I took 50 times the risk to get a fraction of the return. How could I have improved the returns? I should have insisted that companies followed certain corporate governance norms. And if I didn't have the leverage to dictate good governance, I should have invested alongside someone who had the power to mandate good corporate governance terms. Let's look at my investments to illustrate what I mean? Winners With Responsible Leadership Social Tables - Great Management Team, Frequent Credible Business Status, and Financial Reporting and Regular Board Supervision Veenome - Great Founder, Frequent Credible Business Status and regular investor conference calls seeking input. Sideways With Responsible Leadership TalkLocal - Great Management Team, Frequent Credible Business Status, and Financial Reporting and regular investor conference calls seeking input. Winners With Leadership Issues none Losers With Leadership Issues SpotFlux - Not sure, I invested...

Ross Blankenship Failed Entrepreneur and Pretend Angel King

There are a ton of Ross Blankenship fans out there. And these, let's call them "fans" for lack of a better word love to tell stories about this creep. None of the stories are flattering. Since I last published a post about Ross, I've received multiple tips from people who worked with him. The consistent Ross Blankenship Story from all sources goes like this. The poor guy achieved two things in his life...

Attention Law Enforcement – Matthew Pugsley Chalant Health

Attention law enforcement, be warned that Matthew Pugsley, Chalant Health, CEO is on the prowl. There was a time where he took an actual job. It appears that he lost that job and is back raising money for his company that is a total scam (see this post). Matt's been evicted again and is seeking a new place to rent. Landlords be careful, this guy has been evicted for non-payment of rent about a dozen times (see post). By the end of this week, Matthew Pugsley, Chalant Health CEO, may get free rent. He is likely to get 3 hots and a cot for being seriously in arrears on child support. Meanwhile, while not paying child support this scofflaw is a big spender when he goes out on the town (see this post). Here's a warning to landlords and prospective employees who are thinking about working for Matthew Pugsley, Chalant Health CEO, think twice. Here's a recent message I received from someone claiming to be a former employee. I just your articles about the con-man Matthew Pugsley. He is a horrible person who conned young naive sonographers fresh out of school into jobs, came up with a million and one excuses on why he...

Pitching Aspirin Inc

Raising Capital

The other day, I did a class on raising capital and pitching for money to a group of Ph.D. Students, Researchers, and Professors at the University of Maryland. As I went through the pitch, I kept referring to material that they could find on my blog that could prove useful. Here's a recap of curated articles I've written on raising money. Raising Capital Strategy - Getting ready to raise capital for your startup Are You Venture Capital Fundable - Do you really have an idea that will interest investors? The Best Time To Raise Capital - When is the right time to raise money? Six Hurdles To Getting Investors - The more milestones you've successfully completed the lower the risk of executing your plan. Reducing risk raises the odds of raising around at an attractive valuation. A Construct For Thinking About Startup Risk-Reward- A construct to help you decide if now is the time to raise money Targeting Investors - How do you find the right people who might invest in your startup Strategy for pitching to investors - Preparing your pitch Driving Investors On To The Bus - Understanding how investors look at investments Do Venture Capitalists Have Feelings?- Don't just pitch the numbers, pitch the feeling...

Bullshit – Jason Calacanis Angel University

It's difficult to make money in Angel Investing. Most Angels lose money. For people who want to spend money to learn how to lose money, there is Jason Calacanis Angel University. Because if you're willing to flush cash down a toilet, why not flush some of that cash down the Jason Calacanis Angel University toilet. Wait just one cotton-picking minute Glenbo, you Cranky old fart...

More Jason Feimster Plagiarist – Conman and Fake VC

Unfortunately for the World, Jason Feimster, Plagiarist, Conman and Fake VC is back (check out 3sI Phony VC). His web site is back up and this semi-literate, conman is continues to steal other people writing and present it as his own (see this post about his prior plagiarism foibles). If Jason Feimster ever had an original thought it would die of loneliness. That must be why this guy steals other peoples work. There was a while where his low-rent, Wix website went down...

How To Invest in Startups

This is Mr. Cranky's Official Guide on How To Invest in Startups. Now a better topic than How To Invest in Startups would be Why The Hell Would You Want to Invest In Startups but that's another article. Also, a warning. These are my opinions, based on experience as a limited partner in Venture Fund and an Angel Investor. Do not make investment decisions based on this article! Got that? It's just observations of the various choices and the relative benefits and pitfalls of multiple investment methodologies. No primer on how to invest in startups would be complete without a primer on the state of Venture Capital. Venture Capital Investment today is divided into the Haves and the Have Nots: The Haves (THs) - a group of venture funds who raise money from top financial institutions and endowment funds. The THs don't have to actively go out and raise money, there's a long line of Limited Partners ready to invest well over $1 million dollars in the fund to get access to the "best deals." If you're reading this to learn something, you can't invest in any of THs. THs get access to the best deals and in order to limit competition...