Live data from Hacker News

I am a junior angel in Silicon Valley. AMA

news.ycombinator.com

191–200 of 237 posts

Re: I am a junior angel in Silicon Valley. AMA

#191

What's the best way for start-ups to get in touch with you? Do you respond to email pitches? What's the worst way to get in touch with you? Have you ever invested in a start-up that pitched you by email?

Do something that I've heard of before they end up in touch.

Cold emails rarely turn into anything.

Re: I am a junior angel in Silicon Valley. AMA

#192
post #187
post #119

So far I'm surprised that a) nobody has really asked about exits or returns b) people that have asked questions about their own situations have been incredibly vague c) no questions about background or current work or d) no questions about delicious's creation, founding, and later sale.

I think a lot of us have read Founders at Work. How about this, has your wealth made you happier?

Not really, no. I like making things.

Re: I am a junior angel in Silicon Valley. AMA

#193

Do you get many business proposals from friends or relatives that you consider bad or uninteresting? How do you tactfully reject them? In general, did you have relationships with friends or relatives that changed in a significant way once you acquired a non-trivial amount of wealth?

A lot of friends are in the business. A bunch of the things I have invested in are things started by friends.

Re: I am a junior angel in Silicon Valley. AMA

#194

How should entrepreneurs screen potential investors to avoid personality or other conflicts? Assuming you failed the above, how do you deal with an investor who's being difficult or disruptive?

That's a good question.

You have to talk to other entrepreneurs who took investment from the angel.

While any shareholder can cause problems, especially at that stage, a small percentage / non-board angel can't do TOO much damage, I think. But I've never really been in the situation. Ask grellas.

Re: I am a junior angel in Silicon Valley. AMA

#196
post #188
post #169

Earlier quoted context omitted.

Lots more convertible debt lately, which I am not thrilled about. Or do you mean numbers? Every deal is different.

I've heard of more capped valuations for convertible debt with negotiable interest and discount rates (and no warrant coverage), but also seen some angels openly demanding priced rounds. Are such capped convertible notes a good middle ground for debt that works like equity? Have you seen any that provide an alternative conversion if no priced round follows?

I guess so. I really dislike uncapped notes, obviously. Many notes convert after a fixed period of time.

Re: I am a junior angel in Silicon Valley. AMA

#197
post #189
post #169

Earlier quoted context omitted.

Lots more convertible debt lately, which I am not thrilled about. Or do you mean numbers? Every deal is different.

Are you saying that you're not a fan of convertible debt?

Definitely not. I'm investing now, let me price it now.

I've noticed that both very hot and very cold deals are debt. Hot because they can demand it, and cold because they can't scrape a real round together.

Re: I am a junior angel in Silicon Valley. AMA

#199
post #74

Earlier quoted context omitted.

Valuations are often in the $2mm-$5mm range. Sometimes much higher. Never lower. Calculate it out.

What do you understand the valuation to be when the financing is done as convertible debt?

The debt usually has a cap, so I assume the cap.

Stronger deals have no cap, so I am merely hopeful.

Re: I am a junior angel in Silicon Valley. AMA

#200
post #172

I think that delicious is really awesome. I still use it pretty much every day, even though if anything the product has almost declined in quality over the past few years. It feels like Delicious could have been the start of something even larger than a bookmark service, it's my primary resource for finding specific content (eg: rails + tutorial, photo + howto, etc.) I'm aware that that is a fairly large technical ba…

I agree with you. I noticed something about Delicious: when I add a URL, it's rare that someone else hasn't already bookmarked it. That means that Delicious has, to a first approximation, everything interesting on the web. All organized by humans in a rich way. That's an astonishingly valuable data set. Relative to that value, the use that's being made of it is so low it's criminal.

Even if they aren't capable of evolving it, I wish Yahoo would at least make it fast enough that I don't cringe every time I use it.

Post reply on HN