Hosted by Jay Adelson.
Entrepreneur, CEO, and business owner Jay Adelson (Equinix, Digg, Revision3, SimpleGeo) demystifies the start-up process by providing advice, tips, and answering questions. Ask Jay how to turn any business idea into reality: firstname.lastname@example.org, @jayadelson, or http://youtube.com/askjayadelson Read More
Successful entrepreneur and CEO, Jay Adelson, demystifies the start-up process by providing advice, tips, and answering questions. Today Jay discusses funding and explains the difference between angel investors, super angels, and VCs.
Jay's Chalkboard Notes:
1. First off, always take $$ where you can get it
2. If you have a choice know the difference
3. Angels are individuals who invest their own $$
4. Angel investment range is $10K-$250K
5. Angels are typically not on your board and can introduce you to VCs
6. VCs invest other people's $$ from funds
7. VCs typically take 20%-30% of company
8. VCs are looking for 10x - 100x ROI
9. VCs typically join your board and steer company towards a big exit
10. Super angels invest larger amounts of $$ - closer to $1 million
11. Super angels have the benefits of angels without the high pressure of a VC
Your takeaway assignment based on today's question is to figure out the least amount of $$ you can take for your business. First define the next milestone and success that you need to reach and how much it will cost to get there. If that number is less than $100K than choose angel funding (if you have a choice). ONLY go with a VC when you are thinking you need more than $1 million.
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