DISQUS

The Angelsoft Blog: The Entrepreneur/Investor Disconnect on Returns

  • MyOnlineToolbox · 1 year ago
    My suggestion to the entreprenuer is to not get caught up in the exit strategy valuations since the chances of being correct, especially in the founding years is probably way off base. I have found that it is smarter to constantly create value as you reach your goals for product development, marketing, sales and then profitability. All you need to do is find at least one or two angel investors and the specifics ROI measurements will eventually work itself out. And of course, this is easier for the angel investor(s) to digest if your valuations are reasonable. The entreprenuer only has so much bandwidth in a day and my suggestion is to prove the model and make sales. Focus on castles-in-the-sky ROI valuations when you are stuck on a plane, but do not loose the waking hours on this issue.
  • German Shepherd Puppies · 8 months ago
    Investment in itself is big topic to discuss.
    What you have out up is of great value for somebody start thinking of investments in a much dynamic way. As you have mentioned I will say the investor should evaluate the think on case to case basis. When you have limited exposure to funds for investing you want to opt for the best option and when you have more than enough funds to spread it across you can find the multiple places to invest.
    One should opt for an investment plan based on his/her case example investments which you can liquidate as you want. If you need something which you can liquidate on your preference then you should opt for this and so on...
  • BonusCodes · 8 months ago
    There are many types of investors. Each with a risk/return target, a risk appetite, a specific market segment they are interested in, etc. Venture capitalist in particular are trying to invest at the very early stage in a company, and they can hope to multiply their money by a number of times in case of success. Anywhere between 10 and 100, sometimes more. But I do not need to say that recently they take a bit hit. But almost everyone did.
  • Savings Accounts · 6 months ago
    Yet another great post.There are several different types of investment products on the market and to choose one to suit you, your needs and goals must be thought through carefully. Most stable investments should be for the long term, that is 5 years or more - more is better.
    Perhaps the most popular investment product would be superannuation. This is because of the tax savings that are significant and also the fact that the government will add more money for free if you salary sacrifice up to a certain amount
  • maltese puppies · 5 months ago
    I would say diversity is the key. If your going to invest in a start-up, I might invest in a few different firms (maybe in the same industry if it's a hot market) to avoid putting all your eggs into one basket, so to speak.

    This could also give you great insight into the industry and when one of your firms goes down, you'll be able to apply the lessons learned to the one that succeeds. The founders of the successful firm may give you better terms with future agreements if you're able to give them info they couldn't get anywhere else, based on your experience with the failed company.
  • dereklicciardi · 2 months ago
    While I can understand the math here, doesn't the notion that any single company that's invested in has to perform like 10 companies place an undue pressure on the entire process of creating a company? It creates this get it now, sell the future for the present attitude that has the VC industry scared to death of investing in today's market. Looking at this blog post http://www.ipo-dashboards.com/wordpress/2009/08... it stands to reason that even the biggest and brightest companies won't produce revenue fast enough. Something has to give for VC backed innovation to happen and right now the 20% IRR number looks like a prime target when everyone else in the world is getting an order of magnitude less than that on their more traditional investments. (stocks, bonds...) The 20% IRR needs to be relative to the current economic environment or we'll see spurts of over investing in good times and decided periods of underinvesting during bad times. Change the IRR with the times and the market swings won't be so dramatic; they may even be more predictable thus easing the weight placed on the shoulders of each individual deal in a portfolio.