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

Coquitlam, British Columbia, Canada

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Basil Peters

Basil Peters

For the first half of my career I was an entrepreneurial CEO. More recently, I've been a hedge fund manager, venture capitalist and angel investor. This my personal website. It describes my background, has links to my other web sites and hosts the presentations from my recent speaking engagements. Technology Entrepreneur I have always been fascinated by technology. While I was still in... more

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