‘Exit Early – Exit Often’ Keynote Speech
Keynote at the Capital Connects! Southeastern Regional Angel Capital Association Meeting, Greensboro, North Carolina – October 1, 2009
Highlights of the ‘Exit Early – Exit Often’ Video Q&A- Part 4:
- Q: Will institutional investors start to put money into Angel investing?
A: I don’t think Angels need the money. As the boomers enter their prime angel investing years, I don’t think there will be any shortage of capital.
- Q: What does make sense for Venture Capital funds today?
A: There are lots of articles and posts by smart investors who suggest that the current optimum VC fund size is in the $50 to 75 million range.
- Q: Are tax credits for angel investors a good idea? Should they be focused on corporations or individuals?
A: Tax credits are being discussed in many regions. They have certainly worked well where I live.
- Q: Are corporations good angel investors?
A: Most of the time corporations prefer to buy 100% of companies rather than invest in a minority position. They are usually better buyers than shareholders.
- Q: How long will corporate buyers continue to buy young companies?
A: The obvious answer is “until it stops working”. I don’t see this changing for the rest of our careers.
- Q: Do you always need an outside M&A advisor when you are selling a company?
A: In almost every case I have seen, I believe the exit will be done faster, on better terms and at a better price with a professional M&A advisor.
- Q: What should Angels be including in the term sheet to facilitate the exit process?
A: Bill Payne, Dan Rosen and I contributed to a workshop on term sheets in Vancouver this month where this was discussed. Vesting is the most important term to include, but there are several others that are also important to the exit.
Many of the lessons I’ve learned are described in my new book on exit strategies for entrepreneurs and angel investors – www.Early-Exits.com.