Message to Angel Do-ers: Stop Punishing Yourself

The saying: “no good deed goes unpunished” is particularly true in the world of angel groups. Group organizers start with the best of intentions: to support local entrepreneurs, to make investing efficient, to educate new investors, and to promote economic development. These individuals often make the mistake of donating their time up front and then leaving in frustration many years down the line. But it doesn’t have to be this way!

Message to Angel Do-ers: Stop Punishing Yourself

The saying: “no good deed goes unpunished” is particularly true in the world of angel groups. Group organizers start with the best of intentions: to support local entrepreneurs, to make investing efficient, to educate new investors, and to promote economic development. These individuals often make the mistake of donating their time up front and then leaving in frustration many years down the line. But it doesn’t have to be this way!

Compensating the Managing Member in Investment Syndicates

Imagine you are the manager of a seed stage investment fund.  Your job is to make money for your investors through selecting and managing a portfolio of private investments. You work hard to find good deals, to negotiate the terms, and to shepherd each deal to exit.  You do this ten, twenty, thirty or more times in your fund, often looking at dozens of deals before making one investment. So how do you get paid?

Raising Capital Simply

When entrepreneurs raise capital through the sale of some type of security, the temptation is to take the money from whoever offers to invest, regardless of the amount of the investment offer.  It is common practice to set a minimum investment, perhaps $25,000 or $50,000 and simply turn down amounts smaller than that. But raising capital is hard, time consuming work, and it’s difficult to tell small investors “I’m sorry, your investment is not large enough.” It’s even harder when an investor or an angel group pressures the entrepreneur to let them invest at a level below their minimum.

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