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5 Audiobooks Every Start-Up Investor Must Read

Posted by Erica Duignan Minnihan on Aug 22, 2016 4:30:00 PM

 


When it comes to early stage investing, there is so much to learn and an ever-evolving landscape. And there are some great books out there that can help you establish a solid knowledge base in this asset class.

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Topics: Venture Investing, Invest in Startups, Return on Investment

Trouble in Startup Paradise: Watch Out for These 10 Warning Signs Before You Invest

Posted by Erica Duignan Minnihan on Aug 8, 2016 4:00:00 PM

 

 


Most people who talk about angel investing or early stage investing in general often accompany it with a stern warning: “Be ready to lose all of your investment.”

And while this is definitely a possibility, we know that avoiding the companies that implode in a spectacular fashion is half the battle to building a portfolio with a strong IRR. For every company that goes completely bust, you need to generate a 2x return from another investment just to break even.

So here are our top ten warning signs to look out for when you are considering an investment.

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Topics: Venture Investing, Invest in Startups, Return on Investment

How the Return Calculator can help you choose the right investments

Posted by Erica Duignan Minnihan on Aug 2, 2016 2:03:50 PM

 

One of my clients, Jeff, is a high net worth individual who has worked in finance for years. Although he is very familiar with stock market investing, he was a little stumped when it came to understanding the nuances of startup investing.

He was looking at two different deals. Both had great founders, a great market opportunity and some good initial traction. One was raising $2 million at a $10 million valuation and the other was raising $1 million at a $5 million valuation. He wasn’t sure what to do.

“How do I calculate the PE ratios? How do I know what the market cap is going to be?” In short, he needed to know how to evaluate this very special asset class that is a startup investment. And the tools he learned to evaluate public market investments weren’t going to be very helpful to him in this case.

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Topics: Venture Investing, Invest in Startups, Return on Investment

How Do I Calculate My Expected Return?

Posted by Erica Duignan Minnihan on May 6, 2016 3:00:00 PM


Calculating your expected return on a startup investment can be a complicated process, or as simple as something you can do on the back of a napkin. The simple rule of thumb is to estimate your potential return based on how much you expect the company to sell for. Most investors expect a liquidity event such as an acquisition or IPO within 5-10 years after investing. We will use our best estimate of a future acquisition to envision this scenario.

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Topics: Venture Investing, Invest in Startups, Venture Investing Academy, Return on Investment, Direct Investment