Why Every Cap Table Will Include an SPV in the Future
By 2030, you can expect nearly every startup’s cap table to feature at least one SPV, and that’s a major win for founders and investors alike. Cap tables are evolving. Carta reports that SPV formation rose 116% from 2019 to 2024, driven by a wave of early-stage vehicles under $5 million. As startups scale and […]
SAFE, KISS and Convertible Notes – Which One Should Founders Choose?
Raising capital is a critical step for startup founders, and selecting the appropriate funding instrument can significantly impact the future of their ventures. In this article, we will explore three popular fundraising instruments: Simple Agreements for Future Equity (SAFEs), Keep It Simple Securities (KISS), and Convertible Notes. We’ll delve into the features of each instrument, […]
The Advantages of Angel Syndicates
When it comes to financing early-stage startups, angel investors play a crucial role in turning entrepreneurial dreams into reality. These individuals, often seasoned entrepreneurs or business professionals, provide not just capital but also mentorship and strategic guidance. While individual angel investors have long been a driving force in the startup ecosystem, a more recent trend […]
How to Spot the Hidden Gems – A Guide for Savvy Angel Investors
Angel investors serve as the lifeblood of the entrepreneurial ecosystem, providing not just financial backing but also invaluable mentorship and guidance to nascent startups. However, in the midst of an ever-increasing stream of startup pitches for angel investors, the ability to discern the diamonds in the rough becomes a critical skill. The art of evaluating […]
Key Metrics that Startup Founders Should Share with Investors Frequently
Startup founders often find themselves in a constant juggling act as they navigate the complex world of entrepreneurship. A critical aspect of this journey is effectively communicating with investors. Sharing key metrics with current and potential investors is not just about transparency; it’s about building trust and demonstrating your startup’s growth and potential. In this […]
What is an ideal Investment Thesis and Portfolio Size for Angel Investors?
Angel investors provide capital to startups and play a pivotal role in nurturing and guiding early-stage ventures. When considering an angel investor’s investment thesis and portfolio strategy, two key questions arise: Is it important for angel investors to define an investment thesis? And how many deals should they participate in to maximize their chances of […]
Weighing the Advantages and Drawbacks of Angel Investing
Angel investing, a cornerstone of the startup ecosystem, involves high-net-worth individuals providing capital to early-stage ventures in exchange for equity. While angel investing offers numerous potential benefits, it also comes with its share of challenges and risks. In this article, we delve into the pros and cons of angel investing, shedding light on the opportunities […]
Understanding Carry: Aligning Interests Between Fund Managers, Syndicate Leads, and Investors
In the realm of finance, few terms hold as much weight and complexity as “carry,” also known as carried interest. In the venture capital landscape, carry plays a pivotal role, shaping investment decisions, fostering growth, and aligning the interests of various stakeholders. This article aims to unravel the intricacies of carry, delving into its workings, […]
Mastering the Art of Angel Investing: Key Elements for Success
Angel investing is a dynamic and rewarding realm that requires more than just financial contribution. Successful investors bring a unique blend of skills, insights, and qualities that fuel innovation and foster the growth of startups. In this article, we’ll delve into the crucial elements that define the journey towards becoming a proficient angel investor, offering […]
Syndicate vs. Solo Investing: Pros and Cons for Angel Investors
Angel investing has long been a vehicle for individuals to support and potentially profit from early-stage startups. Understanding the angel investors’ pros and cons is crucial as the startup ecosystem evolves, with new investment models like syndicate investing gaining prominence alongside traditional solo investing. Each approach has its own set of advantages and challenges. In […]
