What is it Like to Negotiate a VC Round?
Over the years I’ve written extensively about the downsides of convertible notes for startups such as here, here and here. The truth is that I’ve been warning about convertible notes since 2010 it was first declared that “convertible notes have won.” Today I want to talk about how a VC thinks about equity pricing on your […]
One Simple Paragraph Every Entrepreneur Should Add to Their Convertible Notes
I’m so tired of seeing young entrepreneurs get screwed by their angel investors on convertible notes and I know I can’t convince you not to do it so I’d like to offer one simple bit of advice to help you avoid getting screwed (at least on one part of your note). When you do a […]
Get Inside the Mind of an Angel Investor
In my ongoing quest to get you good transcripts of the wonderful interviews we’ve done in the past, I present you with one amazing interview here with Tom McInerney – a friend, co-investor, former entrepreneur turned angel investor and “wizard of Oz” behind the scenes at the uber hot startup Klout. What is wonderful about […]
What Angel Investing & Florida Condos Have in Common
It’s really hard to zig when the whole world seems to be zagging. One of my favorite quotes I learned in high school was: “Nonconformity is the Highest Form of Social Attainment” It was written as the yearbook quote of the smartest seniors as I was finishing my freshman year. It has always stood with […]
Revisiting Paul Graham’s “High Resolution” Financing
When I first read Paul Graham’s blog post on “High Resolution” Financing I read it as a treatise arguing that convertible notes are better than equity. As I’m generally a believer in ‘pricing rounds’ I initially didn’t agree with the premise of the post. I just re-read it and on second reflection, I’m surprised just […]
When Angels Fight, Silicon Valley Loses
The latest round of developments in the so-called “AngelGate,” including alleged leaked emails and Twitter fails appears to indicate that the situation is more substantial than I thought. As a result, I’m forced to do something unusual–write a blog p…
Angel Investing 4 – Why You Need Deep Pockets or You’ll Lose
This is the fourth article in a series on what it takes to be a great angel investor (and why this should matter to entrepreneurs). Part 1 – Access to Great Deal Flow – is here. The first three skills I espoused were: access to the highest-quality deal-flow, domain knowledge of the topic area in […]
Angel Investing: Skill 3 – Relationships with VCs
This is the third article in a series on what it takes to be a great angel investor (and why this should matter to entrepreneurs). Part 1 – Access to Great Deal Flow – is here. Part 2 discussed the need for domain knowledge since merely “joining the right club deal” will in no way […]
