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...

Startup Funding: Who To Blame for the Lack of #DCTech Cash?

Who should we blame for the lack of startup funding in DC? Angel Investors - Let's blame the Angel Investors! Why aren't people like Mr Cranky investing in startups anymore? After all, wasn't Glen Hellman the #1 Angel Investor in the United States according to Tech Cocktail (tech.co) readers? Actually, no he wasn't and he, who is I, never was the #1 angel anywhere. He who is I, is (or am) also no longer an Angel Investor and the rest of this article describes why. Venture Capitalists - Let's blame the lack of startup funding on all the VC's who just don't "get it." Which isn't true if "it" is not understanding the value of a groovy app like Sick Weather. There is no it to get with apps like Trustify and Sick Weather.  The it that VCs do get however is the actually it that is the problem.  The it that is keeping them from actively investing in this region is that too few its have proven themselves to be worth it in DC as of late. That's why there used to be over 40 active VC's in this town and now there's only 4 or 5 or 6. The Government...