Exit Strategies for Angel Investors Video

The Northwest Energy Angels invited me to Seattle to talk about exit strategies for Angel investors. The full video and Q&A from that talk is online in full 720p High Def.

Some of the highlights include:

  • Organized angel investing is still quite new – only ten or twelve years old.
  • Successful investing requires two things – buying right and exiting well.
  • The big ‘new story’ is the large number of small and medium size exits.
  • The ideal size for big companies to acquire is $10 to 30 million.
  • Companies are being acquired earlier and earlier – often just 2 years from startup.
  • Venture Capital in North America is in crisis – big funds aren’t working anymore.
  • Traditional Venture Capital funds have grown too large for today’s exits.
  • We now have a much better idea of the differences between traditional Venture Capitalists and Angel Investors.
  • The most important differences relate to the exit – the minimum investment size, minimum return required and acceptable time to exit.
  • If a VC follows on it will add about ten years to the exit.
  • Fascinating new data from the bankrupt law firm Brobeck shows that “outcomes are inferior when angels and VCs co-invest”.
  • Angels alone are “as likely as the VC backed firms to have successful liquidity events”.
  • The optimum strategy is ‘Angels or VCs but not both’.
  • Checklist to determine whether an individual company should be financed with Angels only or VCs.

The video is online here.

Exit Strategies for Angel Investors Video

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