Investing Best Practices

By: Ham Lord, Chairman of Launchpad Venture Group and Co-Founder of Seraf-investor.com and Christopher Mirabile, ACA Chair Emeritus, Managing Director at Launchpad Venture Group and Co-Founder of Seraf-investor.com

Note: This article is the eleventh in an ongoing series on valuation and capitalization. To learn more about the financial mechanics of early stage investing, download this free eBook today Angel Investing by the Numbers: Valuation, Capitalization, Portfolio Construction and Startup Economics or purchase our books at Amazon.com.

As your angel career develops, and you start to build a larger portfolio of companies, you are increasingly asked to make follow-on investments. Not only do companies need investment to get off the ground, the faster they grow, the more cash they need. Whether to follow-on, and how to follow-on, are questions which have long given rise to angel debate. We’ll tackle that topic in depth here, but I’ll start out by confessing to bias right up front: Christopher and I are both believers that follow on investments are essential to achieving good returns. We firmly defend and negotiate for pro-rata rights to participate in future financings. Our overall perspective is that with your earlier checks you are basically buying options on a front row seat which comes with the right to add more “smart money” into the winners as they begin to show promise

By: Emily Angold, ACA Marketing Manager

Education is necessary for growth in any profession, but it is vital for angel investors.  Without the tools needed to make smart investments, starting as an angel investor is challenging to say the least.  ACA offers many courses to help angels succeed, including one of the most popular programs, Fundamentals of Angel Investing.  Fundamentals of Angel Investing was created for members to introduce new angels and accredited investors to angel investing basics so they can start smart and further their angel investment knowledge. 

By: Marianne Hudson, ACA Executive Director

The Angel Capital Association is excited to announce our partnership with Hockeystick, the premier data and software provided for the private investing market.  The relationship with Hockeystick will allow ACA to make huge strides with the Angel Funders Report, an ongoing data initiative to improve investment outcomes, by creating an easy to use, free portal to submit the data to behind the public report. 

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