Ep. 188 – Seed Funding: Angel Investment Criteria, Part 5

SIBP-Blog-NEW-1Angel funds and other early-stage investors know the odds. For every one company they back that is a breakout success, five or six others will most likely fail, taking their investment cash with them. Two or three other companies they invest in may break even. If those angel groups want to see a profit when it’s time for them to exit, the companies they invest in need to be primed for serious growth.

In today’s episode, host and business coach Tom Ryan explains the investor’s side of the equity agreement, and why their business model means focusing on high-growth startups with plenty of potential buyers in the wings. Tom is joined by guest co-host and producer Natalie Pyles.

• Show opening, and the return of guest co-host Natalie Pyles

• Recap of the seed funding series thus far (2:00)

• Recap of Asheville Angels investment guidelines (4:00)

• How much money is your venture looking to raise? (8:00)

• Big investment ranges require investigation to find typical sizes (9:30)

• Understanding the language of equity position agreements (10:00)

• Are there consequences for missing growth projections? (12:00)

• Some perspective on the venture capital business model (13:00)

• Are investment funds generally profitable or sustainable? (14:30)

• Next episode: Post-money

• Sign off, and how to contact the show

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