Comments on: F|R: 5 Hacks For Closing an Angel Round http://gigaom.com/2008/09/14/fr-5-hacks-for-closing-an-angel-round/ Trusted Insights and Conversations on the Next Wave of Technology Thu, 26 Nov 2009 06:47:41 +0000 http://wordpress.com/ hourly 1 By: Pat http://gigaom.com/2008/09/14/fr-5-hacks-for-closing-an-angel-round/#comment-900636 Pat Sun, 21 Sep 2008 07:50:59 +0000 http://gigaom.com/?p=20528#comment-900636 <p>I pretty much echo the comments here. I would rather use credit cards than a vulture "angel" like Ian. And if "Chokehold" of Angels is going to offer the same terms as a VC-- why not go to a VC?</p> <p>Other thoughts:</p> <p>$25k/month in revenue = $300k angel that asks for no equity.</p> <p>Maybe time to get money from outside of Silicon Valley? Maybe getting "dumb" money is not so "dumb"?</p> I pretty much echo the comments here. I would rather use credit cards than a vulture “angel” like Ian. And if “Chokehold” of Angels is going to offer the same terms as a VC– why not go to a VC?

Other thoughts:

$25k/month in revenue = $300k angel that asks for no equity.

Maybe time to get money from outside of Silicon Valley? Maybe getting “dumb” money is not so “dumb”?

]]> By: Pavan K http://gigaom.com/2008/09/14/fr-5-hacks-for-closing-an-angel-round/#comment-900248 Pavan K Thu, 18 Sep 2008 21:18:10 +0000 http://gigaom.com/?p=20528#comment-900248 <p>Quite disconcerting to see such negative reactions to this advice. Not so helpful... Would be interesting to see other Angel's comment here or link to other relevant knowledge on negotiating an Angel Round.</p> <p>PS - Ron Conway seems like the type of Angel you would want on board:</p> <p>http://gigaom.com/2008/09/13/ron-conway-more-reasons-to-go-all-angel</p> Quite disconcerting to see such negative reactions to this advice. Not so helpful… Would be interesting to see other Angel’s comment here or link to other relevant knowledge on negotiating an Angel Round.

PS – Ron Conway seems like the type of Angel you would want on board:

http://gigaom.com/2008/09/13/ron-conway-more-reasons-to-go-all-angel

]]> By: terrible advice http://gigaom.com/2008/09/14/fr-5-hacks-for-closing-an-angel-round/#comment-899635 terrible advice Tue, 16 Sep 2008 06:24:48 +0000 http://gigaom.com/?p=20528#comment-899635 <p>wow... thanks for the advice asshole...</p> <p>Dont EVER use the same lawyer as your investor!!!!!</p> <p>your attorney's loyalties will ALWAYS be with the investor b/c he does far more deals with them than you, and he's probably known them for much longer. So when you need your attorney to fight for you most, they wont...</p> <p>terrible terrible advice, I wouldn't take this guy's 500k for .01% of my company.</p> wow… thanks for the advice asshole…

Dont EVER use the same lawyer as your investor!!!!!

your attorney’s loyalties will ALWAYS be with the investor b/c he does far more deals with them than you, and he’s probably known them for much longer. So when you need your attorney to fight for you most, they wont…

terrible terrible advice, I wouldn’t take this guy’s 500k for .01% of my company.

]]> By: Saul Lieberman http://gigaom.com/2008/09/14/fr-5-hacks-for-closing-an-angel-round/#comment-899529 Saul Lieberman Mon, 15 Sep 2008 21:58:52 +0000 http://gigaom.com/?p=20528#comment-899529 <ol> <li>Use the same lawyer as your investors.<br /> You'd be better off representing yourself. But why stop there? Tell your investors not to use a lawyer and split the savings with you. And, do you really need documents? Some of the world's greatest deals were probably done on a handshake.</li> </ol>
  • Use the same lawyer as your investors.
    You’d be better off representing yourself. But why stop there? Tell your investors not to use a lawyer and split the savings with you. And, do you really need documents? Some of the world’s greatest deals were probably done on a handshake.
    • ]]>         By: Jason http://gigaom.com/2008/09/14/fr-5-hacks-for-closing-an-angel-round/#comment-899376 Jason Mon, 15 Sep 2008 06:30:40 +0000 http://gigaom.com/?p=20528#comment-899376 <p>Angels sometimes sweet but still hard like VCs</p> Angels sometimes sweet but still hard like VCs

    ]]>         By: Josh Williams http://gigaom.com/2008/09/14/fr-5-hacks-for-closing-an-angel-round/#comment-899363 Josh Williams Mon, 15 Sep 2008 04:33:23 +0000 http://gigaom.com/?p=20528#comment-899363 <p>As an aside, Number 5 (keep your burn low) is wise advice. Also, evidently Ian is a member of the National Ski Patrol... so +2 points for that.</p> As an aside, Number 5 (keep your burn low) is wise advice. Also, evidently Ian is a member of the National Ski Patrol… so +2 points for that.

    ]]>         By: Josh Williams http://gigaom.com/2008/09/14/fr-5-hacks-for-closing-an-angel-round/#comment-899362 Josh Williams Mon, 15 Sep 2008 04:30:57 +0000 http://gigaom.com/?p=20528#comment-899362 <p>Yeah umm — definite DO NOT use the same lawyer as your investors. And definitely DO NOT sell 33 percent of your company for $500,000. Instead, keep working hard, inform yourself, build value in your company before raising money — and keep opportunistic angels like this away.</p> Yeah umm — definite DO NOT use the same lawyer as your investors. And definitely DO NOT sell 33 percent of your company for $500,000. Instead, keep working hard, inform yourself, build value in your company before raising money — and keep opportunistic angels like this away.

    ]]>         By: Tequila Al http://gigaom.com/2008/09/14/fr-5-hacks-for-closing-an-angel-round/#comment-899355 Tequila Al Mon, 15 Sep 2008 03:46:19 +0000 http://gigaom.com/?p=20528#comment-899355 <p>encouraging someone to not pay themselves is not sound advise. It creates stress that takes away from the focus of finding your "safe place" At the end of the day it's like anything else, it's all about the product. It'll always be that way!!! I want to meet Ron Conway.</p> encouraging someone to not pay themselves is not sound advise. It creates stress that takes away from the focus of finding your “safe place” At the end of the day it’s like anything else, it’s all about the product. It’ll always be that way!!! I want to meet Ron Conway.

    ]]>         By: DigitalLove http://gigaom.com/2008/09/14/fr-5-hacks-for-closing-an-angel-round/#comment-899347 DigitalLove Mon, 15 Sep 2008 01:42:17 +0000 http://gigaom.com/?p=20528#comment-899347 <p>Who the heck is Sobieski anyway and what's his track record? Ron Conway's success speaks for itself.</p> Who the heck is Sobieski anyway and what’s his track record? Ron Conway’s success speaks for itself.

    ]]>         By: Angie Chang http://gigaom.com/2008/09/14/fr-5-hacks-for-closing-an-angel-round/#comment-899331 Angie Chang Sun, 14 Sep 2008 22:38:55 +0000 http://gigaom.com/?p=20528#comment-899331 <p>This has been interesting - I've never heard the part about using the same lawyer for both the angel investor and the company being seeded.</p> This has been interesting – I’ve never heard the part about using the same lawyer for both the angel investor and the company being seeded.

    ]]>         By: no thanks http://gigaom.com/2008/09/14/fr-5-hacks-for-closing-an-angel-round/#comment-899323 no thanks Sun, 14 Sep 2008 20:56:01 +0000 http://gigaom.com/?p=20528#comment-899323 <p>Accept a lower valuation, use the same lawyer ...</p> <p>Yah, right! Thanks, but no thanks!</p> Accept a lower valuation, use the same lawyer …

    Yah, right! Thanks, but no thanks!

    ]]>         By: Hillary Morton http://gigaom.com/2008/09/14/fr-5-hacks-for-closing-an-angel-round/#comment-899320 Hillary Morton Sun, 14 Sep 2008 20:41:33 +0000 http://gigaom.com/?p=20528#comment-899320 <p>Both sides is that YOU need to identify it and correct it. Being your investors can offer you your ultimate payoff of one founder's. It rarely is " breaking " the inflection.</p> Both sides is that YOU need to identify it and correct it. Being your investors can offer you your ultimate payoff of one founder’s. It rarely is ” breaking ” the inflection.

    ]]>         By: thu http://gigaom.com/2008/09/14/fr-5-hacks-for-closing-an-angel-round/#comment-899310 thu Sun, 14 Sep 2008 18:27:46 +0000 http://gigaom.com/?p=20528#comment-899310 <p>1 to 60 people get selected (time sink) 33% of the company (control gone) don't pay yourself (unrealistic expectations) promise me safe point (unrealistic timelines) bring some outsider already ready to vouch (you must have customer)</p> <p>Try Ron Conway or your professor or YCombinator.. if not just build it yourself..</p> 1 to 60 people get selected (time sink) 33% of the company (control gone) don’t pay yourself (unrealistic expectations) promise me safe point (unrealistic timelines) bring some outsider already ready to vouch (you must have customer)

    Try Ron Conway or your professor or YCombinator.. if not just build it yourself..

    ]]>         By: Pauly C. http://gigaom.com/2008/09/14/fr-5-hacks-for-closing-an-angel-round/#comment-899308 Pauly C. Sun, 14 Sep 2008 17:55:08 +0000 http://gigaom.com/?p=20528#comment-899308 <p>Great tips!</p> Great tips!

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