Angel Insights Blog

On August 23, 2023, the U.S. Securities and Exchange Commission (the “SEC”) adopted a number of new rules (the “New Rules”) under the Investment Advisers Act of 1940 (the “Advisers Act”). The New Rules are designed by the SEC to increase investor visibility into adviser practices and to address certain practices that could lead to investor harm. The New Rules impact three categories of investment advisers: (i) all registered investment advisers, (ii) registered investment advisers (“RIAs”) that advise private funds, and (iii) advisers (both registered and non-registered) that advise private funds.

The reasons for failure are diverse, but almost never due to fraud. Unfortunately, the intense media coverage of a few spectacular failures such as Theranos and FTX (and the fraud associated with them) have sadly led many policy makers in Washington DC to conclude that fraud is rampant in this asset class and therefore further regulation is necessary to help “protect” investors. This perception is a remarkable misunderstanding, and this article will present data and analysis to set the record straight.

This is Part II of a two-part series on Revenue-Financed Capital (RFC) for angels. Part I addressed the question of when RFC might be appropriate to meet some of the capital needs of angel portfolio companies. This post discusses why RFC may be appropriate for angel portfolios.

This is Part I of a two-part series on Revenue-Financed Capital (RFC) for angels. Part II will address the question of whether angels should include RFC in their investment portfolio.

Angel investing has undergone significant changes in recent years. As an important source of financing for startups and small businesses, it's critical for current and emerging angel investors to understand the shifts occurring in the industry. Here are some of the most notable dynamics impacting angel capital today.

Last week, the ACA Public Policy leadership, alongside members of GrayRobinson, made a visit to Capitol Hill to support expansion of Section 1202 exclusion of gain from the sale of qualified small business stock. ACA has been the driving force behind the legislation because it serves as a catalyst for investment and innovation within the Angel community. The legislation, HR 3937, has passed through the Ways and Means Committee and is awaiting debate on the House floor. In addition to Section 1202, the group also urged legislators to protect financial thresholds in the current definition while also opening up measures of sophistication with additional entryways.

While not the only factor in determining the success of a start-up company, having a knowledgeable and active Board member can help drive success in a start-up company and is a factor that should be evaluated.

Las Vegas, NV (July 10, 2023) – Queen City Angels’ Chairman and Co-Founder Tony Shipley’s pride for the more than 190 women and men who make up their membership as well as the coaching and mentoring they provide to entrepreneurs, is evident. In fact, winning the Hans Severiens Award at the 2023 ACA Summit of Angel Investing is a validation of his profound efforts to grow and support angel investing nationally through the Angel Capital Association as well as the community in which he works.

We all collectively dodged a bullet after the collapse of Silicon Valley Bank which threatened to destroy a whole generation of startups. Had the US Treasury and Federal Reserve Bank not intervened quickly, many companies would have lost their hard-won deposits and the market collapse would have made it extremely difficult for them to access new financing. Many more companies in and outside the tech sector would have struggled as their products and services stopped working because of reliance on these newly defunct tech companies’ products. While the short-term impact would have been dramatic for our entire economy, the long-term impact would have been far greater because it would have likely resulted in an unparalleled mass extinction event covering a whole generation of companies.

Working harder won’t solve poverty, pollution, social inequality, and dozens of other major challenges we face on this planet. If we want to feed, clothe and house 8 billion people, address the host of health, environmental and other issues, good old fashioned elbow grease isn’t going to do it. But if we become effective at commercializing innovative solutions of passionate entrepreneurs, we stand a chance.