Investor management 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.
Investor management includes:
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
Overview Can you provide a Round A investor with a10 times return on their investment when they exit in 5 years time? Do you have a talented and committed team of superstars? Can you deliver the 30 second pitch, at a moments notice, to a VC (Venture Capitalist)? Can you deliver the 3 minutes pitch … Continue reading Why should a Venture Capitalist invest in you?
Overview There are two ways for a private company to sell securities in Ontario: with or without a prospectus. A prospectus is always required unless the company meets specific exemption conditions. With these exemptions, the company has multiple potential sources of capital. With a prospectus, the company can raise capital from any investor, either through … Continue reading How can a private company sell securities in Ontario?
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 do you read this article? This article is based on research of Angels investors. The research comes from three sources, listed in the Further Reading section. The research was done at different points in time by different groups. Thus, the findings should be viewed as illustrative. All of the research is U.S.-based, with no … Continue reading How profitable is Angel investing?
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?
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?
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
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
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?
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?
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?
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
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.
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)
The purpose of this article The two-fold purpose of this article is to: Enable early stage startups, prior to scaling, to understand the due diligence questions they may encounter from an investor. Enable an investor to structure a set of due diligence questions. You may download a PDF of this article from: Due diligence questions … Continue reading Due diligence questions for an early stage startup.
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
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 You may … Continue reading Startup terminology and metrics.
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?
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