Investor interactions includes:
- The company perspective of raising capital from investors and communicating with both potential and current investors; and
- The investor perspective of selecting companies and managing their investments.
How do you invest in a private company? V2
Purpose of this article Outline questions to ask as you’re considering whether or not to invest in a private company. The questions are focused on a long-term established company. The company would not be a candidate for early stage or venture capital investing. This article asks questions which may not be part of a standard … Continue reading How do you invest in a private company? V2
Why should a Venture Capitalist invest in you? V2
What is the purpose of this article? Enable founders and investors to discuss and understand some of the VC (Venture Capitalist) investor process in early stage companies. This understanding will help founders create and manage their VC relationship building and two-way communications’ processes. You can download a PDF of this article from: Why should a … Continue reading Why should a Venture Capitalist invest in you? V2
How can a private company sell securities in Ontario? V2
What is the purpose of this article? Enable private company founders, boards of directors, CEOs, CFOs, and investors to structure their discussion on raising capital and how to sell securities (equity or debt) in Ontario. This article does not provide legal or financial advice. Before making any decisions or take any actions to sell securities … Continue reading How can a private company sell securities in Ontario? V2
How does a startup raise capital from investors? (V3)
The purpose of this article is to provide a framework for startups to create their specific plan to raise capital from investors. You may download a PDF of this article from: How does a startup raise capital from investors This article has a limited scope and does not address all situations. The focus is on … Continue reading How does a startup raise capital from investors? (V3)
How profitable is Angel investing? V3
What is the purpose of this article? Share with you some fact-based profitability analysis from the U.S. angel community. I am not aware of similar detailed fact-based based analysis of the Canadian angel community. Enable you to think about whether you want to make money as an angel investor and what you might have to … Continue reading How profitable is Angel investing? V3
How profitable are search funds?
What is the purpose of this article? Help investors think about whether to invest time and money into the search fund asset class. This article does not provide legal, tax, financial, or investment advice. You can download a PDF of this article from: How profitable are search funds What are the critical learnings in this … Continue reading How profitable are search funds?
What is the value and role of a lead investor?
You may download a PDF of this article from: What is the value and role of a lead investor How do you read this article? This article is written for startup founders. There are two examples of a lead investor. Then there is a generic description of a lead investor. The lead investor in your … Continue reading What is the value and role of a lead investor?
How do you understand potential investors?
You can download a PDF of this article from: How do you understand potential investors? Why understand potential investors? You will fail to raise capital if you: Don’t understand the investors needs. Don’t understand how the investors perceives how you meet their needs. Don’t understand how the investors perceive that you meet their needs better … Continue reading How do you understand potential investors?
What are the different kinds of startup pitches?V2
This article has a two-fold purpose: For startups at the pre-Series A stage, outline the different kinds of startup pitches. For established companies, outline different ways to describe their companies, business units, and major projects. You may download a PDF of this article from: What are the different kinds of startup pitches V2 The purpose … Continue reading What are the different kinds of startup pitches?V2
How does a startup communicate with potential investors? V2
The purpose of this article is to outline the various types of messages and information a startup may communicate with potential investors. You may download a PDF of this article from: How does a startup communicate with potential investors V2 Communications with potential investors is based on the information pyramid. The information pyramid outlines the … Continue reading How does a startup communicate with potential investors? V2
How can portfolio companies update investors?
You may download a PDF of this article from: How can portfolio companies update investors Why do existing investors want monthly updates? Meets any contractual requirements for specific reporting. Offers regular confirmation of investors’ confidence and trust in the CEO and management team. Ensures transparency from the CEO. No lies, misrepresentations, or embellishments. Assess whether … Continue reading How can portfolio companies update investors?
How do venture capitalists assess teams?
You may download a PDF of this article from: How do venture capitalists assess teams The purpose of this document is to help startups understand how VCs (venture capitalists) assess founding teams. Everyone has their own point of view. I will share with you some research. Research shows that the most important factor early-stage VC … Continue reading How do venture capitalists assess teams?
How do venture capitalists create value?
You may download a PDF of this article from: How do venture capitalists create value The purpose of this article is to help startups and investors in venture capital funds understand what VCs (venture capitalists) do to create value. VCs are focused on creating financial returns for their investors. VCs often have other objectives, such … Continue reading How do venture capitalists create value?
Finding new investors
The purpose of this article is to outline how a startup can find new investors. You can download a PDF of this article from: Finding new investors Building relationships with potential investors is the foundation for raising funds. What is the source of VC’s (Venture Capitalists) closed deals?1 12% of closed deals resulted from a … Continue reading Finding new investors
Valuing a pre-revenue startup.
You can download a PDF of this article from: Valuing a pre-revenue startup The purpose of this article is to: Help investors value pre-revenue startups Help pre-revenue startups understand what makes a fundable pre-revenue startup and what they need to communicate to pre-revenue investors. There is very limited angel investment in pre-revenue companies.1 Only 3% … Continue reading Valuing a pre-revenue startup.
Survey – When do startups get capital from outside investors? (V2)
This is an update to my 2019 Feb 22 survey, with additional findings and insights. I did a survey of founders and CEOs of startup software companies. I asked them the question: When did you get outside investors, excluding friends and family? After you had some satisfied customers who provided some revenue? Before? At some … Continue reading Survey – When do startups get capital from outside investors? (V2)
Due diligence questions for a startup. V3
Due diligence questions for a startup. V3 What is the purpose of this article Provide a framework for founders and investors to identify due diligence questions. This article does not provide legal, tax, financial, or investment advice. You can download a PDF of this article from: Due diligence questions for a startup V3 What are … Continue reading Due diligence questions for a startup. V3
Startup investment memo
The purpose of this article. The two-fold purpose of this article is to: Provide an investment memo template for a startup investor, investment fund, or angel group. Enable early stage startups to understand how they will be assessed. This article is linked to “Due diligence questions for an early stage startup”1 You may download a … Continue reading Startup investment memo
Startup terminology and metrics. V3
The purpose of this article This article has a two-fold purpose: Provide definitions of startup terminology and metrics. My various articles will refer to this article, which means that I don’t have to include definitions and metrics in each article. Enable a startup to quickly create its own set of terminology and metrics. There is … Continue reading Startup terminology and metrics. V3
Pitch evaluation – What are deal killers?
Purpose: This article has a two-fold purpose Encourage startup founders to research the deal-killer evaluation criteria used by investors to quickly determine whether to devote further time to learn about a startup. Given the massive number of startups looking for funding, time constraints force investors to be able to say “no” as quickly as possible. … Continue reading Pitch evaluation – What are deal killers?
Venture Capital Investment Decision Making Process
Purpose of this article Provide startup founders and early stage companies with a broad understanding of the investment decision making process used by VC (Venture Capital) firms. This article provides a broad generic framework. The actual process will depend upon the specific VC firm e.g. investing in pre-revenue startups or a $50 million revenue company. … Continue reading Venture Capital Investment Decision Making Process
Successful angel investors are focused on the exit.
Purpose of this article This article has a two-fold purpose: Help angel investors identify the exit questions and issues they need to consider when assessing potential angel investments and managing their exit. Help founders understand what successful angel investors may be thinking regarding exits. This article considers success to be the cash return the angels … Continue reading Successful angel investors are focused on the exit.
Why won’t angel investors provide funding?
Purpose of this article This article has a two-fold purpose: Help angel investors identify risks and issues to consider before making an investment. Help founders understand how successful angel investors think. You may download a PDF of this article from: https://koorandassociates.org/wp-content/uploads/2020/12/why-wont-angel-investors-provide-funding.pdf What is a startup? A startup is a temporary organization designed to search out … Continue reading Why won’t angel investors provide funding?
Are you an Angel investor or gambler? V2
What is the purpose of this article? Help you identify whether you are an Angel investor or a gambler. This article does not provide tax, legal, or financial advice. You can download a PDF of this article from: Are you an Angel investor or gambler V2 What are the critical learnings in this article? You … Continue reading Are you an Angel investor or gambler? V2
What are the differences between pre-seed and seed financing?
What is the purpose of this article? Enable founders and investors to discuss their assumptions about what each startup financing round means. You can download a PDF of this article from: What is the difference between pre-seed and seed financing What are the critical learnings in this article? Investors are looking for the evolving validation … Continue reading What are the differences between pre-seed and seed financing?
LP (Limited Partner) assessment of a fund. V6
LP (Limited Partner) assessment of a fund. V6 What is the purpose of this article? Help individual LPs (Limited Partners) think about how to assess a fund making investments in private companies. Institutional investors, family offices, and ultra-high net worth individuals should do more than what is discussed here. Help fund managers prepared to engage … Continue reading LP (Limited Partner) assessment of a fund. V6
Why would someone buy control of your company?
What is the purpose of this article? Enable company owners or equity investors to discuss why someone would buy control of the company and the company’s value. You may download a PDF of this article from: Why would someone buy control of your company What are the critical learnings in this article? Control buyers are … Continue reading Why would someone buy control of your company?
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