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A Guide To Angel Investing Documents: Preferred Stock Deals

The Seraf Compass

Unlike a convertible debt issuance, these stock transactions permanently alter the capitalization of the company by adding new stockholders, who are typically purchasing a brand new class of stock created for them, typically a series designated class of preferred stock with special rights and privileges they have negotiated.

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A Guide to Angel Investing Documents: Convertible Debt Deals

The Seraf Compass

Unlike a stock transaction, these convertible debt deals do not alter the capitalization of the company by adding new stockholders until the debt is converted into equity. This article is intended to provide a quick overview and explanation of the principal documents in a fundraising where the investors are purchasing convertible debt.

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Angel Investing by the Numbers: Valuation, Capitalization and Startup Economics

The Seraf Compass

In the world of startup company investing, the best-known investors are those who invest in the tiny percentage of companies that make it big. Should a typical angel investor apply the “swing for the fences” approach to their personal investing? Think Facebook, Google or Amazon.

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Seismic Forces Driving The Growth of Angel Investing

The Seraf Compass

It feels like there is more written about angel investing lately than ever before. This form of early-stage investing seems to be having its 15 minutes of fame. As someone who worked with venture capital in the run-up to the first dot.com boom and is presently an active angel and co-head of one of the largest and busiest U.S.

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TechCrunch+ roundup: Non-dilutive biotech capital, long-term angel investing, WayRay’s $80M pitch deck

TechCrunch

Long-term angel investing: Understanding capital requirements and how to find quality investments. But there’s a reason successful angel investors are few and far between: returns may take several years to materialize, and not all companies you want to invest in will want your money.

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A Weird and Wacky Approach To Angel Investing

OnStartups

An Odd Start To My Angel Investing. So I thought of an idea: Why not invest in startups? Angel investing is like having a niece or nephew. It is publicly traded with a market capitalization of over $20 billion. I then wrote a seed round investment check of $500,000 to HubSpot.

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Just starting out angel investing? Avoid these 7 mistakes.

TechCrunch

One survey finds that while about half of angel investors rate the potential for returns as their top motivator for investing, about a third also rank solving some of the world’s biggest challenges as another. A lot of us make this mistake early on: We invest too much money on one of our first deals. Avoid these 7 mistakes.