Category: Early Exits

Angel Investing

Exit Strategies for Angel Investors - Part 3 Highlights of Exit Strategies for Angel Investors - Part 3: Fascinating new research on the data from the bankrupt law firm Brobeck - including 182 Series-A VC and angel investments, Shows that "outcomes are inferior when angels and VCs co-invest" - it turns out angels and VCs aren't that compatible. Angels alone are "as likely as the VC backed firms to ...

Angel Investing

Exit Strategies for Angel Investors - Part 2 Highlights of Exit Strategies for Angel Investors - Part 2: Venture Capital in North America is in crisis - big funds aren't working anymore. Traditional Venture Capital funds have grown too large for the current exit environment. We now have a much better idea of the differences between traditional Venture Capitalists and Angel Investors. The ...

Angel Investing

Exit Strategies for Angel Investors - Part 1 Highlights of Exit Strategies for Angel Investors - Part 1: My background to put my comments in perspective. Organized angel investing is still quite new - only ten or twelve years old. Successful investing requires two things - buying right and exiting well - a lesson I learned late (and expensively). There is lots of doom and gloom about exit...

Angel Investing

Exit Strategies for Angel Investors - presented to the Northwest Energy Angels in Seattle, September 11, 2009 The Northwest Energy Angels invited me to Seattle to discuss exit strategies for Angel Investors. PowerPoint PDF here Exit Strategies for An...

Early Exits

In my early-stage venture capital fund, The BC Tech Fund, I invested in nine companies. About three years after the first investment, three of the nine had achieved early exits - one went public and two were acquired. • Brightside was acquired in February 2007 • Parasun was acquired in May 2007 • Metrobridge went public in July 2007 These are much fa...

Case Studies

Helge is the most recent university student I have helped become a millionaire. I invested three times in Helge's company. My BC Tech Fund was the first fund to invest. When I invested the first time there was only Helge and one other person on the company payroll. This is a summary of Helge's story. Helge's story Helge came to Canada in 1998 when he was 19 years old. He completed high school, and an obligatory year in the military, in...

Angel Investing

When I first blogged about early exits in BC all of the comments were negative. This wasn't surprising. A lot has been written about the negatives of startups being 'built to flip". The term has a negative connotation - as if something improper is being done. The most popular article on this topic, titled "Built to Flip" was written by Jim Collins and published in Fast Company...

Early Exits

Companies everywhere are being sold earlier and earlier. These days, acquisitions often happen before companies are two or three years old. Recent UBC research discovered that in British Columbia and Alberta, we are better at early exits than anywhere else in Canada or the US. In my early-stage venture capital fund, The BC Tech Fund, I invested in nine companies. Three years after the first investment, three of the nine had a liquidity event - one ...

Angel Investing

Whenever I hear an entrepreneur, or angel investor, say “early exit” they have a really big smile on their face. Even some of my VC friends beam when they talk about the jump in their returns if they've gotten lucky with an early exit. In my experience, almost everyone wins in an early exit – the entrepreneurs, the employee share and option holders and the angel investors certainly do. I do acknowledge there are times when early exits are not...

Angel Investing

Companies are being acquired at earlier and earlier stages – often just 2 or 3 years from startup. Why is this happening now? A large part of the answer is that this is another natural consequence of the internet - part of the development of our economy and the evolution of our species. There are some excellent early exit stories in BC. Early exits helped make my