Archive: Pre-IPO Profits
Page:
Syndicate Leads Should Have Skin in the Game
About a third of the deals I’ve seen on AngelList recently share a disappointing trait — the syndicate lead has only invested $1,000-to-$2,000. This is almost always a red flag, because it’s a sign that the lead has a low amount of conviction in the deal. And that small investment amount doesn’t affect the carry percentage the lead will receive on any upside. If the overall syndicate raises $300,000, the lead gets 15% of the upside…
When Is a High Valuation Worth It?
By Adam Sharp on May 11, 2021
In recent months, I’ve talked a lot about how expensive some startup rounds are becoming. That doesn’t mean you should avoid every round that looks expensive at first glance. Sometimes startup investments seem expensive when they are…
Focus on Traction When Investing in Startups
By Adam Sharp on May 4, 2021
Traction is by far the most important signal for startup investors. That may seem obvious. But when I started out, I was more excited about investing in breakthrough technology. I often overlooked a company’s traction when I made my investment decision. But really, there’s nothing more…
Use Your Personal Network for Deal Flow
By Adam Sharp on April 27, 2021
Lately I’ve been spending more time looking for offline angel investments. I want to make sure that I’m not missing out on prime opportunities by focusing exclusively on online deal flow. So I’ve been reaching out to colleagues, friends and companies I’m familiar with to let them know…
Later-Stage Valuations Are Getting Out of Control
By Adam Sharp on April 20, 2021
I’ve been invited to a few deals lately with mind-blowing valuations. I was being asked to invest in SaaS (software as a service) businesses with $1 million of revenue. They were showing about 150% growth rates. Yet they were being valued at nearly $250 million. This…
Don’t Write Off Weird Startups
By Adam Sharp on April 13, 2021
Some of the best startup investments I’ve made — and some of the best that I’ve missed — have been “crazy” or “weird” ideas. Take Density, one of the first startups I invested in back in 2014. Density’s mission is to…
Three AngelList Syndicates Worth A Look
By Adam Sharp on March 30, 2021
I’m an AngelList superfan. It’s a beautiful marketplace for early-stage investors. The site has grown incredibly since I started investing in 2014, and today there are more than 100 syndicates to choose from. Here are some of my favorites. Jenny Rooke – Biotech …
New $5 Million Limit Enables Attractive Crowdfunding Deals
By Adam Sharp on March 23, 2021
Last week, the SEC’s new rules around equity crowdfunding went into effect. Now companies can raise up to $5 million per year from the crowd. On the first day, we got a good idea of the potential of this new medium. Gumroad — an online platform…
San Francisco Startup Valuations Continue to Balloon
By Adam Sharp on March 16, 2021
I’ve been writing about rising valuations for a while now. But this week, I saw a deal that was so crazily priced, I just have to write about it again. This young San Francisco-based startup had about $700k in annual recurring…
Top Tips From Six Years of Startup Investing
By Adam Sharp on March 9, 2021
I’ve now been investing in startups for more than six years. And it’s taken that long to prove concretely that what I’m doing is working. This is the frustrating — yet rewarding — truth of startup investing. It takes a very long time to see results.
Be a Value-Add Investor
By Adam Sharp on March 2, 2021
One of my favorite things about early-stage investing is that the companies are small enough that investors actually have a chance to make a meaningful impact. In the VC/angel world, this is known as being a “value-add investor.” As online startup investors, we can certainly add…
Big Tech Censorship Creating Startup Opportunities
By Adam Sharp on February 23, 2021
Back in October, I wrote a piece titled Big Tech’s Growing Vulnerability. In it, I discussed the rapidly increasing amount of censorship on sites like Facebook, YouTube and Twitter. No matter how you view the big tech controversy, I think…
How to Handle Silicon Valley’s Rising Valuations
By Adam Sharp on February 16, 2021
It’s getting a little crazy out there in some pockets of the startup investing world. All the Series A deals I’ve seen lately have been much more expensive than they were even a year ago. I recently saw a fast-growing software company raising a Series A with just…
Patience Pays in Startup Investing
By Adam Sharp on February 9, 2021
I recently had my first startup investment go public. But don’t get too excited yet. The company, Plurilock Security, just listed on the Toronto Venture Exchange at quite a tiny valuation — around $15 million. I took the opportunity to add to my position. I really…
Robert Downey Jr. Starts an AngelList Fund
By Adam Sharp on February 2, 2021
Well, this is somewhat unexpected — actor Robert Downey Jr. just launched an AngelList rolling fund. The fund — called Footprint Coalition Ventures — will invest in sustainability and environmentally-focused startups. Here’s an excerpt from…
Pay Attention to Reg CF Deals
By Adam Sharp on January 26, 2021
On March 15th, the fundraising limit on Regulation Crowdfunding (Reg CF) campaigns will go from $1.07 million to $5 million. Startups that raise capital using Reg CF are the deals that non-accredited investors can access. With the $1 million limit, Reg CF just wasn’t worth it…