Comments for Investor Connect

Comment on How do you retain employees? by investor

investor — Fri, 10 Feb 2017 12:54:57 +0000

Here’s a post from Fred Wilson on how to retain your employees

http://avc.com/2017/02/from-the-archives-retaining-your-team/

Comment on How does one manage the team over time? by investor

investor — Sun, 29 Jan 2017 13:10:32 +0000

Fred Wilson provides a succinct post on how most startups will have 3 teams over the life of the company. You can read more here:
http://avc.com/2013/08/mba-mondays-turning-your-team/

Comment on Who should an entrepreneur invite to sit on the Board of Directors? by investor

investor — Thu, 26 Jan 2017 13:42:51 +0000

Here’s a good post on bringing on a Board Chair to “herd the cats” in the boardroom:
http://avc.com/2012/03/the-board-of-directors-the-board-chair/

Comment on How much equity should a founder give to employees? by investor

investor — Wed, 25 Jan 2017 14:01:47 +0000

Here’s a great blog post from Fred Wilso (avc.com) that describes how to split equity among the team members:

http://avc.com/2010/11/employee-equity-how-much/

Comment on What are the key factors in investing in a startup that drive a successful financial outcome. by investor

investor — Tue, 24 Jan 2017 12:29:02 +0000

The three factors that influencd positive outcomes included:

1. Due diligence – more hours invested yielded higher returns.
2. Experience – more experience in the angel yielded better returns.
3. Participation – those angels who interacted with the entrepreneur several times a month yielded better returns.

Comment on What is the difference between a Convertible Note and a SAFE? by investor

investor — Sat, 21 Jan 2017 16:04:07 +0000

A Convertible Note is a debt instrument with a CAP rate (how much it will convert to equity), an interest rate (how much interest the investor earns while holding it in debt form), and a discount rate (how much of a discount the investor receives on the priced equity round later). The SAFE note is a simplied version of a Convertible Note and comes in various flavors by removing the interest rate, discount rate, or cap rate. It’s basically a Convertible Note without the other factors.

Comment on Where is the best place to find deals? by investor

investor — Wed, 18 Jan 2017 14:06:04 +0000

Your network is the best source of deals. Those who you know that invest the way you invest typically have access to the deals you are most likely to pursue.

Comment on Who should an entrepreneur invite to sit on the Board of Directors? by investor

investor — Mon, 16 Jan 2017 13:45:19 +0000

A typical board for a Series A funded company has 2 members from the company, 2 members from the investor side and 1 member who is neither an investor or company employee but rather brings industry expertise. Board members should be brought in to add value and chosen for specific skills and assignments. The board is an extension of the management team and can be used to help fill gaps in the management team so members should be chosen carefully for what roles the company needs. Company needs will change over time and so board members may be rotated out to make way for new members with different skill sets.

Comment on When do you use an equity structure vs. a revenue-based funding structure? by investor

investor — Sun, 15 Jan 2017 13:14:28 +0000

Choosing an equity structure or a revenue-based funding structure for your startup comes down to answering the question “how does the investor get paid back?’ If the plan is to sell the company for a large gain, then an equity structure makes the most sense. If the business will not be sold (e.g. it’s a family business or a lifestyle business) then a revenue-based funding structure makes sense. In some crowdfunding raises, the number of investors can be quite large and can make it difficult to manage the cap table. For those deals, paying the investors their return out of revenue makes the most sense.