Angel Blog
angelblog.net · Personal blog · on HN since 2008
Angel investor Basil Peters writes about startup exits, angel investing, VC returns and selling a business.
What HN saysHN commenters recommend his video series on selling a business as the best on the subject, and cite his posts on VC terms and valuations.
16HN people shared it
9linked it in comments
33stories submitted
141story points
7 years agolast shared
2008people per year2026
Most-shared posts
- 1Startups – The Essential to Do List3 people · 4 points · first shared 2009 · discussion on HN
- 2VC Return Numbers are Bogus2 people · 10 points · first shared 2009 · discussion on HN
- 3Selling a Business Guide - 4 part HD video2 people · 3 points · first shared 2010 · discussion on HN
- 4VC Mandatory Moonshot The Unwritten Terms2 people · first shared 2009
- 5How VCs Block Exits1 people · 47 points · first shared 2009 · 20 comments on HN
- 6Why VCs Will Block Good Exits1 people · 22 points · first shared 2009 · 22 comments on HN
- 7The 'One Page' Term Sheet for Angel Investors1 people · 13 points · first shared 2008 · 6 comments on HN
- 8Don't Blow the Biggest Deal of Your Life1 people · 5 points · first shared 2009 · discussion on HN
- 9Exits with VC and Angel Investors - The Wiltbank Data1 people · 4 points · first shared 2008 · discussion on HN
- 10Exit Early - Exit Often1 people · 3 points · first shared 2009 · discussion on HN
- 11Fund Structures for Angel Funds and Early Stage/Seed Venture Funds1 people · 3 points · first shared 2009 · discussion on HN
- 12Angels Finance 27 Times More Start-ups Than VCs1 people · 3 points · first shared 2009 · discussion on HN
- 13Early Exits - Your Golden Opportunity - Full High Def Video of Talk at ORIC1 people · 2 points · first shared 2009 · discussion on HN
- 14Is Angel or VC Financing Best?1 people · 2 points · first shared 2009 · discussion on HN
- 15Angel Investing is Where VC was 25 Years Ago1 people · 2 points · first shared 2009 · discussion on HN
What HN people wrote when they linked it
clomond · 2019-10-09
Seen it referenced a few times, some digging around will get you there. Also an angel investor spoke at my university about how they invest, and mentioned returns of 23%/24% annualized if I recall - but this was asterisked with "your portfolio of companies must be greater then 20 - any less and you risk losing everything". And, your money is essentially "locked" for 5-10 years (can only get your cash when there is a liquidity event - if one happens at all)
Found this: http://www.industryventures.com/2017/02/07/the-venture-capital-risk-an…
And:
http://www.angelblog.net/Venture_Capital_Funds_How_the_Math_Works.html
But given there are many different flavors, sizes, vectors etc of VCs, and given many keep their numbers hush, hush - I wouldn't even know where to look for any kind of "official" numbers on it.
keeptrying · 2010-07-26
This is the best video series I've seen on the subject. The guy even wrote a book on exits.
http://www.angelblog.net/Selling_a_Business_Guide.html
Hope this helps.
Best of luck!
webwright · 2010-05-27
I think Joe missed one of the crucial considerations in valuation... How many doors you close with a high valuation.
If you close $3m on a $10m post-money valuation, you're signing up to build a $100m company (see http://www.angelblog.net/VC_Mandatory_Moonshot_The_Unwritten_Terms.htm… ). If things aren't going great (i.e. growth has plateaued), you MIGHT be able to sell for $50m.
This is especially true if you take money from a BIG venture fund (who has $500m under management and needs to see BIG exits to move the needle).
Looking at the chart here ( http://redeye.firstround.com/2007/07/the-unintention.html ), the vast majority of exits are under $100m... Which means that committing yourself to be north of that means a long road and a lot of risk.
gruseom · 2009-10-15
This is superbly clear. The post linked to at the end is also a must-read:
http://www.angelblog.net/VC_Mandatory_Moonshot_The_Unwritten_Terms.htm…
I have the impression that people like Wilson and Kopelman are at the forefront of an emerging wave of VC: leaner and better aligned with founders. I hope that's true.
chris123 · 2009-10-07
This post begs the question that going the VC rout is right for "you," which is rarely the case.
Most founders and startups are better off bootstrapping and positioning for an early exit than chasing VCs. If you don't know what an early exit is, why it's a good option to have, and why VC's will usually block it, see Basil Peter's blog, http://www.angelblog.net/ (he's compiled much of the info on his blog into a PDF called “Early Exits," which you can find there, too).
I'm digressing, but the point is, VCs are wrong for 99% of startups, and that's a good thing. You do not want them unless you don't need them, in which case they will be chasing you and pitching you, which is the way it should be. Bootstrap or get an angel investor.
Signed,
Former Venture Investor, now startup founder
htormey · 2018-01-15
I think exit times are taking longer across the board, especially compared to earlier periods in SV history:
http://www.angelblog.net/Venture_Capital_Exit_Times.html
pedalpete · 2009-07-08
Here's an angel term sheet from Basil Peters. Lots of good stuff on his site.
http://www.angelblog.net/Venture_Term_Sheets.html
basilpeters · 2009-01-30
I get asked this all the time. Here is my suggested startup to do list. I hope this helps. http://www.angelblog.net/Startups_The_Essential_To_Do_List.html
jacquesm · 2010-03-03
I think that as long as shares are to identified people the securities laws are pretty lenient.
It's as soon as shares are traded publicly and 'to bearer' that you get in to the trouble zone.
more reading:
http://en.wikipedia.org/wiki/Accredited_investor
http://www.entrepreneur.com/money/financing/loansfromfriendsandfamily/…
http://www.angelblog.net/Startup_Funding_the_Friends_and_Family_Round.…
It's definitely possible I think, if the funding is structured as a loan then there is no problem at all, if it is in return for equity you have to be a bit more careful but I don't think that it is a requirement that every investor is an 'accredited investor', especially not if the individual amounts are small enough.
I'd certainly make sure that was 'non voting' stock, otherwise you have a real issue with share holder meetings right away, which (for instance) with 10 people supplying $1000 each would not be in relation to the investment.