Sponsored by the Angel Capital Education Foundation and the Angel Capital Association
presented at the Angel Capital Association National Summit, Silicon Valley May 5, 2010
Part 1 – Angel Investing in the 21st Century
Part 1 PowerPoint PDF is online here.
- Outline of the Early Exits Workshop and how I got started on Early Exits
- Successful investing requires two things – investing right and exiting well
- Angels and entrepreneurs would have more fun and make more money if we focused more on our exits
- Angel investing is still new – about where traditional Venture Capital investing was in the mid-1980s
- The economy has changed and traditional Venture Capital isn’t working for today’s tech companies
- What happens to angels and entrepreneurs when traditional VCs invest in our companies?
- When VCs invest, on average it adds about a decade to the exit timeline – the math explains why.
- The best strategy is to have angel investors or traditional VCs – but not both – university research shows
- When do traditional Venture Capital investors make sense for technology companies? A simple test for each company.
- Most M&A exits are under $20 million – because that’s what works for the acquirers in today’s economy
- The media does us a disservice by writing stories about the really big exits – which aren’t happening as often anymore
- Examples of these exits and why they are happening now – under $20 million is easy
- Big companies have lots of cash and are starting to consider traditional VC funds as their competitors
- Google wants even earlier exits – their sweet spot is under $20 million and they prefer pre-revenue companies
- There are many other types of buyers today including medium-sized companies and even boomer entrepreneurs
Part 2 is online here.
Many of these lessons are described in my book on exit strategies for entrepreneurs and angel investors – www.Early-Exits.com.