Archive for September 2016

Diane Perlman, Global CMO at MassChallenge

This post originally appeared on Gust.com

With startup growth up 61% since 2014 and more investment programs emerging, it can be overwhelming for founders to know just where to jump in. As the most startup-friendly accelerator on the planet, MassChallenge has helped 835 startup companies around the world, who have raised over $1.1 billion in funding and created over 6,500 jobs. We have seen startups at all stages of growth and know whether the current need is an investment, support, or both, there is an option out there for you.

By: Swati Chaturvedi, Medium/ @propel(x)  

This blog initially appeared on Dissected by propel(x) blog on Medium.  It shows how one angel investor thinks about valuations.  Other angels may have different thoughts or calculations, but it is a resource for entrepreneurs to learn about the equity raising process.

Putting a value on your visionary idea — you know, the one that’s going to change the world — can be tricky. To you as a founder, your idea is priceless. To investors…not so much. In reality, it’s investors’ job to think about it differently and press down on valuation. Understanding their perspective with regard to valuation will help your fundraising efforts go smoothly and net you the investments you’re after.

So, how can startups bridge the gap between the investors’ thought process and theirs? A good place to start is by understanding how angels and VCs think about valuation and their portfolio as a whole. Then, startups should consider some basic data and work backwards to arrive at an implied valuation.

By Chris McCannell, Partner at Eris Group

Editor’s Note:  ACA wants to share with our members our progress in Washington.  It’s an important use of member dues, and we believe it is worth every penny.  We work with Eris Group on American public policy issues, and have had great results in the last year – from a 100% exemption on investment gains to House passage of bills that would ensure that demo days are not included in general solicitation and increasing the number of investors in an angel fund or syndicate from 99 to 249.  With Eris Group, ACA has also helped move the conversation about the definition of accredited investor to a more positive one (in angels’ view), and we are now regularly sought out by Members of Congress and other organizations for input and support of legislation and policy issues.

ACA learned in 2010 that Congress and regulators could have a huge impact on angel investors and the startups angels support.  ACA was able to ensure Dodd-Frank didn’t increase the financial thresholds for the accredited investor definition then, but the association learned it needed help from DC professionals to protect angels through that experience.

By: Christopher Mirabile, ACA Chair, Launchpad Venture Group, and co-founder of Seraf-investor.com

This post originally appeared on Seraf-investor.com

Note: This article is part of an ongoing series on Early-Stage Deal Terms. To learn more about navigating term sheets and investment documents, download this free eBook today - Understanding Early-Stage Deal Terms.

Active angels work with term sheets regularly, but not every investor fully understands the sometimes arcane language in these highly-specialized documents. What are term sheets, what do they signify, and why are they so important?

If you will walk through this short series on deal terms with us, we can explain. Although it is a fairly complex subject, we have a relatively simple framework we can use to help all angels understand term sheets better and retain and apply that understanding in real life deals.

Non-Binding; Summary Instructions

By: Elaine Bolle, ACA Board Member and RTP Capital

The following is part of our periodic ACA Blog series highlighting ACA member expertise and insights on resources for angels.  The topics will vary and include ways ACA angels are making best use of their time – and often ACA benefits – to make smart investment decisions.  The first tip is how RTP Capital provides their members direct access to ACA benefits as part of the group’s member onboarding process. Thank you Elaine Bolle (link to profile) for sharing! 

We look forward to more member tips for angels.  When you have a resource to share with angels please contact Sarah Dickey, ACA Membership Director to learn more. 

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