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Angel Investors, a Field Guide

jeanyang.com

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Re: Angel Investors, a Field Guide

#31

Post by bix6 »

testbjjl wrote: post #26
davecyen wrote: post #11

> if a VC investor is doing their job well, they will make sure to keep investing in your company until they have a good amount of ownership. This means it is against their incentives to introduce you to other investors or do anything else that interferes with their ability to buy more shares in your company for a good price. this is only true for larger multi-stage funds who compete with each other, not for Seed or…

Do you have a portfolio or any direct experience to share? It seems the author is speaking from experience.

Many funds only invest in a few rounds. The $10M micro VC that participated in your seed round isn’t making a dent in your $100M D raise.

Syndicates are much stronger than a sole VC leading everything. There’s just way more capital and help with a syndicate.

Re: Angel Investors, a Field Guide

#33

Post by renewiltord »

Fascinating. I guess people go through this in different ways. Don’t know any startup founders who took a path with this structure.

Ultimately she did exit to Postman so whatever she did was successful though of course one cannot cargo cult everything.

https://news.ycombinator.com/item?id=36787860

Re: Angel Investors, a Field Guide

#35

Post by snayan »

skeeter2020 wrote: post #25
jjmarr wrote: post #19

Earlier quoted context omitted.

lol that's egg on my face. I just assumed he wouldn't be working two full time jobs at once. That's wild.

He's an hall of fame basketball player who has made a shit-ton of money, drafted after one year of collge with a team of bankers investing his money, he's definitely not "hustling two jobs" simultaneously. The semi-remarkable thing is he hasn't blown his wealth on gambling or pet sharks.

If it were that easy, the norm wouldn't be blowing the wealth on gambling or pet sharks lol.

If he has successfully assembled a team of bankers that has been as successful as his portfolio suggests, while allowing him to be completely hands off, the man clearly has talents beyond the basketball court.

Re: Angel Investors, a Field Guide

#37

Post by pavlov »

davecyen wrote: post #11

> if a VC investor is doing their job well, they will make sure to keep investing in your company until they have a good amount of ownership. This means it is against their incentives to introduce you to other investors or do anything else that interferes with their ability to buy more shares in your company for a good price. this is only true for larger multi-stage funds who compete with each other, not for Seed or…

Yeah. In my experience investors in the early rounds are eager to do introductions because they’re still seeking to validate the investment internally.

If they led a pre-seed, they’d be happy to see someone else lead the seed round because then it’s easier to make the case within the fund that they should maintain or increase their stake.

External validation means a lot when the company is young.

Re: Angel Investors, a Field Guide

#38

Post by abc123abc123 »

Stay away from the Angel investor game unless:

1. You're extremely rich. 2. You see it as a learning opportunity or you enjoy helping, without thought of financial reward.

What will happen, at the slightest whiff of success, is that professional investors and VC will swoop in at a moments notice, and dilute you to pieces.

In the end, you will have paid for the company while it was small, to get it started, and then the VC:s will snatch it away by diluting you. Hence nr 1 above, but be prepared to spend!

Re: Angel Investors, a Field Guide

#40

Post by AYBABTME »

abc123abc123 wrote: post #38

Stay away from the Angel investor game unless: 1. You're extremely rich. 2. You see it as a learning opportunity or you enjoy helping, without thought of financial reward. What will happen, at the slightest whiff of success, is that professional investors and VC will swoop in at a moments notice, and dilute you to pieces. In the end, you will have paid for the company while it was small, to get it started, and then t…

How does this happen with the typical SAFE?
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