Venture Capital Forum

Audio from the Venture Capital Forum

From Venture Capital Blogger: Dan Primack of PeHUB the audio from a venture capital forum that he moderated a couple months ago.  The conference is invite-only for technology entrepreneurs and investors.  Panelists included: Brad Feld (Foundry Group), Josh Kopelma (First Round Capital), Jo Tango (Kepha Partners) and Eric Hjerpe (now with Kepha, but an official free agent at the time).

The panelists shared some interesting insights such as telling which firm they’d join if their’s didn’t exist, Josh comparing troubled portfolio companies to train fires and Brad’s argument that the survival of venture capital as an asset class is mostly irrelevant to his business.

Here is link to the audio for Venture Capital Forum Audio

Entrepreneur Risks

Angel Investors that Entrepreneurs Should be Wary Of

Angel investors can help grow your business and while they are often beneficial there are some types of angel investors to look out for.  These angel investors will often to do more harm than good for your business.

Angel Investors To Avoid:

Control Freak Angel Investor:  This angel investor is a great source of capital but the moment your business hits a pothole, the investor is ready to start controlling your business.  The control freak angel investor usually relies on special clauses in the contract that give him more power if you fail to perform a duty.  This is how a control freak attempts to take over your business and run it as his own, thus creating a tension between his tendency to interfere with the entrepreneur’s creative control.

Micro-Manager Angel Investor: On the surface, this looks like the ideal investor; he wants to lend you the capital to grow your business and he offers his expertise, for free.  However, after a while it becomes apparent that this investor tries to involve himself in every aspect of your business.  The angel investor will either annoy you by trying to offer help in the simplest tasks or he will be so worried over his investment that he checks on every single operation.  While some micro-managing angel investors will simply exit the investment, it’s not always the case.  Some become litigious investors.

The Litigious Investor: The litigious investor knows you lack the funds to fight a lengthy court case so they will look for any opportunity to take you to court.  Rather than helping your business succeed, this type of angel investor tries to squeeze money out of you through threats, intimidation and legal action.  The litigious angel investor looks for the slightest error–failing to send him stock certificates, failing to keep him informed in a timely manner, etc.  Some entrepreneurs certainly should be taken to court but there are some angel investors that exploit this means for their own gains.

The Street has some tips for avoiding these nightmare angel investors:

• Whenever possible, only accept investments from credible, professional investing organizations — not private individuals.
  
• If you are a raw start-up and have no choice but to accept investments from private “angel” investors, do the following: Ask what other companies they’ve invested in and talk to the CEOs of those companies to find out what kind of investor they’ve been. Also, make sure your lawyer writes the investment document — not your investor. This document should be standard for all your investors and not negotiated on a one-on-one basis. Watch out for any attempts to add clauses that can come back to bite you. And don’t eat any soup that tastes funny.
  
• Whenever possible, hire an investment banker to prepare a proper Private Placement Memorandum that’s consistent with National Association of Securities Dealers requirements. We generally refer to PPMs as “anti-investment” documents because they warn the investor about everything that could potentially go wrong, minimizing any basis for a lawsuit.
• Divide your investors into two categories: pure investors and those you feel may bring additional value. For those in the first category, don’t encourage or allow them to “get actively involved” in the company. Be polite but firm in telling them you’ll keep them informed of your progress through written means only. If you want more active involvement, you’ll ask them to formally join an advisory board or the board of directors. However, if you do so, there will be strict, written guidelines as to what is expected.

Angel Investors

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

Angel Investors Definition

If you are wondering, what is an angel investor?  Then here is a short definition of what an angel investor is and what characteristics generally define angel investors:

An angel investor is a wealthy individual who provides capital to an expanding small business. An angel investor typically invests his own private money, unlike collective venture capital funds. The angel invests in the startup process and has a personal stake in the company’s success.

Similar to venture capital investments, angel investors are vulnerable to a high risk of failure, but if the company is successful the possible returns are equally high. Startup businesses often fail, costing angel investors large sums of money. Angel investors compensate for this by demanding a high percentage of any success. Angel investors are an important way for small businesses to gather the capital necessary for major expansion.

Below please find the Angel Investor Profile for Centennial Investors.

At this time we are still constructing this profile for Centennial Investors. If you would like contact details for this angel investor firm or other angel investors please see our Angel Investor Directory

Tags: Centennial Investors, Centennial Investors, angels, Centennial Investors email, Centennial Investors contact, phone

Angel Investors

An angel investor is a wealthy individual who provides capital to an expanding small business. An angel investor typically invests his own private money, unlike collective venture capital funds. The angel invests in the startup process and has a personal stake in the company’s success. Similar to venture capital investments, angel investors are vulnerable to a high risk of failure, but if the company is successful the possible returns are equally high. Startup businesses often fail, costing angel investors large sums of money. Angel investors compensate for this by demanding a high percentage of any success. Angel investors are an important way for small businesses to gather the capital necessary for major expansion.