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 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...

Another One Bites The Dust – West Coast Deal II

Another one bites the dust, packs up their bags, and leaves the DC area for Silicon Valley. Last week, YouEye, a firm that we covered back in February, left town for California. The company has been out on the money-raising circuit since the beginning of the year, received offers of funding at a reasonable valuation from several of the investors of the University of Maryland’s Dingman Center for Entrepreneurship Angel Network.  But after an expedition out west, YouEye received offers of funding at nearly twice the valuation that DC investors were offering. So walking in the footsteps documented in our article The West Coast Deal, which discussed local companies like PointAbout/AppMakr and Hitfix high-tailing it out of DC, YouEye’s CEO Kyle Henderson follows the money and headed west.  YouEye, a once Proudly Made in DC firm, becomes a Proudly Launched and Left DC firm. One possible bright side in the story for DC could be that several of the Dingman Angel investors co-invested with the west coast angels.  So we can hope that cash produced by a profitable liquidity event will be reinvested in DC....