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...

Startup Business Plan

Get Investors to Read Your Startup Business Plan

How do you get investors to read your startup business plan? Well short of walking into their offices and holding a gun on them, there's no guaranteed way to get them to read a business plan. There are however several ways to get them to not read your startup business plan and they include: Send it to investors who don't invest in your space - You're a pre-revenue media entertainment startup located in Washington DC seeking seed funding and you send the plan to a later-stage investor that doesn't focus in media and entertainment. Wrong Stage. Wrong Geography. Wrong Investor. Blind Unsolicited - Send in an unsolicited blind plan. Why waste a stamp. If you're sending in a blind, unsolicited business plan to an investor, save yourself a stamp. Just put it in an envelope, address the envelope and place it in your recycle bin. Maybe you should shred it first so no one else will find out how stupid you are. Technology - Make it all about the tech. Tell them every thing about the inner workings of your technology and ignore why anyone would want it. Use lots and lots of big words - Forget graphics, bullets and a narrative....