Comments on: We need a “Nutrition Facts” label for Angel Investors http://www.scrollinondubs.com/2010/05/27/nutrition-facts-label-for-angel-investors/ Sean Tierney's Blog Wed, 01 Feb 2012 18:58:31 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: Sean Tierney http://www.scrollinondubs.com/2010/05/27/nutrition-facts-label-for-angel-investors/comment-page-1/#comment-391877 Sean Tierney Sat, 29 May 2010 00:08:55 +0000 http://www.scrollinondubs.com/?p=1617#comment-391877 @Michael - Obviously the further along you are, the more traction you can demonstrate and the greater likelihood you have of convincing someone else to give you money. Nobody is suggesting Angels fund concepts purely off of a napkin- that's a complete perversion of what i said. 4/5 of the companies last night at CrowdPitch were pre-revenue. If Angels are entertaining deals at that stage then they should recognize it's all about assessing the viability of the product, the quality of the team, the market opportunity, etc and making a a decision whether they want to throw their chips down on this guy. The 3yr projections slide at this early stage is complete BS b/c the model will inevitably change at least 3 times by then. It's fine as an exercise to see they've gone through the thought process and what their assumptions are, but it's not anchored by facts and therefore is completely speculative. The Angels that expect a serious answer to "what will my return be" are delusional. BTW nobody is moaning. This is a proposal to have Angels self label w/ some objective measures so all parties involved can see basic facts about how legit they are. sean @Michael – Obviously the further along you are, the more traction you can demonstrate and the greater likelihood you have of convincing someone else to give you money. Nobody is suggesting Angels fund concepts purely off of a napkin- that's a complete perversion of what i said. 4/5 of the companies last night at CrowdPitch were pre-revenue. If Angels are entertaining deals at that stage then they should recognize it's all about assessing the viability of the product, the quality of the team, the market opportunity, etc and making a a decision whether they want to throw their chips down on this guy. The 3yr projections slide at this early stage is complete BS b/c the model will inevitably change at least 3 times by then. It's fine as an exercise to see they've gone through the thought process and what their assumptions are, but it's not anchored by facts and therefore is completely speculative. The Angels that expect a serious answer to "what will my return be" are delusional.

BTW nobody is moaning. This is a proposal to have Angels self label w/ some objective measures so all parties involved can see basic facts about how legit they are.

sean

]]> By: Michael http://www.scrollinondubs.com/2010/05/27/nutrition-facts-label-for-angel-investors/comment-page-1/#comment-391849 Michael Fri, 28 May 2010 15:52:16 +0000 http://www.scrollinondubs.com/?p=1617#comment-391849 well, get used to these questions. Due to the market failure, angels repeatedly want more bang for their buck, and want to put 50-100 grand into companies who already have a scalable business model that is disruptive (patents applied for) with a product in the market making money and a creditable leadership team. Moan and groan all you want arizona, but the days of napkin funding are over. well, get used to these questions. Due to the market failure, angels repeatedly want more bang for their buck, and want to put 50-100 grand into companies who already have a scalable business model that is disruptive (patents applied for) with a product in the market making money and a creditable leadership team. Moan and groan all you want arizona, but the days of napkin funding are over.

]]> By: Chris Ayers http://www.scrollinondubs.com/2010/05/27/nutrition-facts-label-for-angel-investors/comment-page-1/#comment-391773 Chris Ayers Thu, 27 May 2010 17:34:27 +0000 http://www.scrollinondubs.com/?p=1617#comment-391773 Having been in the same company last night, i couldn't agree more. I know which judge you're talking about and he drove me crazy too. Actually there was another judge that actually mentioned how much he had funded in the last 2.5 years and i was underwhelmed. We have a lot of people taking on the title Angel Investor here in AZ, but perhaps i'm just not involved enough to know what are they actually doing. I'll have a side conversation with you later. Having been in the same company last night, i couldn't agree more. I know which judge you're talking about and he drove me crazy too. Actually there was another judge that actually mentioned how much he had funded in the last 2.5 years and i was underwhelmed. We have a lot of people taking on the title Angel Investor here in AZ, but perhaps i'm just not involved enough to know what are they actually doing. I'll have a side conversation with you later.

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