Picking your next angel investment is one that will no doubt consume large amounts of an investor’s time. Having a clear guideline or decision framework is both valuable in saving you time but also in increasing your overall rate of return. There used to be an old adage that you shouldn’t invest in a business that is more than 100 miles away so that you can always keep an eye on your investment. While this was certainly true over the past 50 years, it is more and more becoming an outdated and hazardous train of thought. Continue reading »

Finally found that entrepreneur that you want to invest in?  He or she has exactly what it takes to make the venture succeed?  You want to take part of it so both of you will prosper?  But now you’re not sure about how to get the deal terms to where you want them?  Here are three key tips from the experts that are worth a quick review:

Continue reading »

It’s a great question and an absolute must for any growing business to consider.  The benefits of offering Debt or Loans to potential investors is that you of course retain all of the equity and a claim to all of the business’ profits.  You also get to retain total control and do not have to worry about other shareholders causing problems legally or otherwise for you.

But we would take the other side of this debate, we would recommend you take on equity investors far before you take on creditors for two key reasons.  First off, with an equity offering, you do not have any interest payments or looming debt.  We can tell you that most people (including entrepreneurs) do not think as rationally and clearly as they do when they have borrowed money to make money.  People tend to make decisions more in haste and tend to hit the panic and euphoric buttons much too quickly;  Not exactly the environment for shrewd business decisions.

Continue reading »