angel investment Archives - Startup Economist

Why Angel Investors are so Sought After

Tuesday, 18 August 2020 by Paul O'Brien

A great many new ventures are NOT businesses. They don’t yet know customers, have a business model, nor see a clear path to making money. We refer to these as “startups” Startups are distinct from new businesses (and new businesses are not necessarily startups) in that the business model is NOT known. This means such

Published in Startups

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Startups, It’s About Returns to Investors

Wednesday, 20 November 2019 by Paul O'Brien

I’ve had a particularly interesting week in Austin; through some events and lots of coffees, I’ve meet with a ton of founders, perhaps more than ever in 3 days alone. Interesting why? Easily half, argued with me that startup investors are seeking revenue and don’t require an exit. At least, that’s what they’re being told.

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Published in Startups

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Funding a Venture Before Angel Investors

Monday, 04 March 2019 by Paul O'Brien

This is a tough question to broach with entrepreneurs but it’s one that comes up almost daily. From where does the money come to start?? There is a reason most entrepreneurial success is found by people in their 40s… being able to leverage a network, drawing from experience, and having the money available to start

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Published in Startups

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On the Challenges Facing an Angel Investor

Wednesday, 14 November 2018 by Paul O'Brien

Angel investment is a distinct *source* of capital that it’s important to distinguish from “seed money,” funding from angel groups, venture capital, money from an incubator, or even an early investment from someone with later stage expectations. In my time in Silicon Valley, with New York, and in Texas, what is glaringly obvious is that

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Published in Startups

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Overcoming Obstacles: How Startups Prevent a Hiccup in Due Diligence

Monday, 18 September 2017 by Paul O'Brien

Most of the articles you read about venture capital, and getting funded, are focused on the positive outcome – finding, meeting, and pitching the VC. Let’s take a look at a startup from the other perspective – how to avoid a “no.” If an investor takes a shine to you, they’re going to go through

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Published in Startups

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Why Tech Startup Investors Expecting Revenue are Wrong

Monday, 04 April 2016 by Paul O'Brien

A far too frequently overheard conversation in the startup community goes something like this: “Apparently neither Instagram nor Snapchat had paying customers while receiving both seed and series A funding?! I couldn’t believe it. Investors, advisors, and incubators these days are constantly trumpeting that a monetization model (or at least an anticipated revenue trajectory) is

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Published in Startups

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How are Startups Getting Funded without Revenue?!?

Thursday, 30 October 2014 by Paul O'Brien

Understanding how to disrupt markets creates the value startup investors seek

Asked the other day, having witnessed the success of WhatsApp, “how are these companies getting funded when they don’t have paying customers?” It’s a good question, but frankly too, one that for many of us, actually doesn’t make sense. Most innovation gets funded without revenue so I’d ask in return, what makes you think you

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Published in Startups

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