Exit Strategies for Angel Investors Part 4 Q and A

BY Basil Peters

Exit Strategies for Angel Investors – Part 4 – Q&A

Highlights of Exit Strategies for Angel Investors – Part 4 – Q&A:

  • Q: Secondary markets – how can angels and entrepreneurs get liquidity prior to an M&A transaction?
    A: Several new ideas are being tried: Sharespost in Silicon Valley, GreenAngel Fund a publicly traded secondary market for cleantech.
  • Q: Question about whether entrepreneurs need Venture Capital investors for their relationships with the M&A buyers?
    A: Today, if you have a presence on Google, you can make a connection to almost anybody.
  • Q: Are Angel backed companies more capital efficient than companies financed by traditional Venture Capital funds.
    A: There is no academic research on this yet, but from my experience, I believe the answer is “Yes”.
  • Q: Why do you keep saying ‘traditional’ Venture Capital – is there a new type of venture capital coming?
    A: Yes, many smart people are discussing new models for Venture Capital funds. I believe new smaller funds will develop.
  • Q: Can you talk about cross-border angel investment?
    A: I spend a lot of my time on this side of the border and am on the executive of the Bellingham Angel group. About a third of the companies they invest in are across the border in British Columbia. The new international tax treaty has really leveled the playing field for angels. I think it’s very healthy.

Part 5 (Q&A Part 2) is available here.

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.

Part 5 (Q&A Part 2) is available here.