Ask Me Anything About Being An Angel Investor - Page 4

ceczar · #31 11-08-2007, 02:46 PM

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I try to only invest 40% of my BR at one time. The rest is invested in mutual funds.

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but how much of that 40% will you invest in individual ideas/companies?

how do you structure your investments? do you get equity, are you making high interest loans, do you get bought out when VC decides to invest, do you ever keep your equity past the beginning stages?

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You realize the USPS has a government sanctioned monopoly on first class mail right?

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kipin,
i imagine the idea was the company would give away the postage for free in exchange for the advertising, not that they would be doing their own letter delivery.

Klompy · #32 11-08-2007, 02:47 PM

How did your dad get started in it?

TheDoubleA · #33 11-08-2007, 02:50 PM

[ QUOTE ]
[ QUOTE ]
I try to only invest 40% of my BR at one time. The rest is invested in mutual funds.

[/ QUOTE ]
but how much of that 40% will you invest in individual ideas/companies?

how do you structure your investments? do you get equity, are you making high interest loans, do you get bought out when VC decides to invest, do you ever keep your equity past the beginning stages?

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Yea, this is more along the question I was trying to ask.

Will you really drop 40% of your portfolio on one individual investment?

Also, due to the high risk of your investments, how much say do you have in the way of how there are operated?

Do you use 3rd parties to moniter the progress of these investments?

Keyser. · #34 11-08-2007, 02:54 PM

Surprised some of you haven't heard the term angel investor--I thought it was pretty common.

What kind of accountability do the people who you invest in have to show? Like you just write a check and they promise to pay back a percent of money once they start turning a profit? Seems risky

bobman0330 · #35 11-08-2007, 02:56 PM

Percentagewise how much of the profit would you take from a company that is a moderate success? A huge success?

To what extent is the relationship between you and your portfolio cos. governed by contractual arrangements and how much by informal means?

venture · #36 11-08-2007, 03:12 PM

If i was going to invest 40% of my BR into one single company that be approx 11m. It's not out of the question but highly unlikely to happen. I'd say 3m i'd do.

Dids · #37 11-08-2007, 03:20 PM

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I WOULD LIKE TEN THOUSAND DOLLARS, CAN I HAVE IT?

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Yes..If you can show me what you'd do with the money and I believe it will work to make more money. I usually don't invest such low amounts of money.

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MOSTLY ROLL AROUND IN IT.

ALSO I WANT A GRILL (the kind you cook food with)

ceczar · #38 11-08-2007, 03:24 PM

can you please provide an example of a transaction, obviously you don't have to use a real example if there's confidentiality issues. how much money did you invest, what share of the company did you get for your money, how long did your investment last before you cashed out, etc.

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I suppose compared to other angel investors i might "suck" I only made 6 figures this year.

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since 5% of the 11mm you have to invest in this stuff is already >500k, making 6 figures isn't really saying that much, especially if you haven't had any big failures yet. i would guess returns on successful projects should be well into the double digits annually to justify the high risk of total loss when investing in startups, so why aren't you making 7 figures?

AquaSwing · #39 11-08-2007, 03:25 PM

A year seems like a short time to get a return. What's you're usual exit strategy?

Generally the angel round is pretty early in a company's life. Do you look for the quick exit or are you willing to hang in there through further rounds of financing until a buyout/public happens?

Our company has been around for a long time and is just building sales for that VC round, where would that sort of company fit in your plans?

venture · #40 11-08-2007, 03:25 PM

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
I WOULD LIKE TEN THOUSAND DOLLARS, CAN I HAVE IT?

[/ QUOTE ]

Yes..If you can show me what you'd do with the money and I believe it will work to make more money. I usually don't invest such low amounts of money.

[/ QUOTE ]

MOSTLY ROLL AROUND IN IT.

ALSO I WANT A GRILL (the kind you cook food with)

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If you are going to make quality sammiches for 2+2ers at a expensive price with this grill. Then we might be able to do business. [img]/images/graemlins/wink.gif[/img]