So, You Wanna Fund a Startup?
So, You Wanna Fund a Startup?
Wired News has an interesting read about funding start-ups. The rewards can be staggering, and they do not dwell on the failures.
Private equity investing is an incredibly lucrative proposition if done correctly. Take Sequoia Capital and Kleiner Perkins Caufield & Byers, two venture capital funds that invested $25 million in Google in 1999. The 20 percent stake in Google those funds purchased has a market value today of more than $15 billion.
The article runs through the ways of getting yourself into the risky business of funding start-ups, including being an "angel". Not everyone can apply!
Even angel investing isn't open to all. To participate in most angel forums, one must qualify as an accredited investor. Basically, this entails having at least a million dollars in assets as a single person or married couple, or earning an individual annual income of at least $200,000.
My friend invests in
My friend invests in startups. So far every single one of them went to the wall.
I used to work with someone
I used to work with someone who went on to become an Angel Investor specialising in early stage internet businesses, and seems to have a real knack for it since now he has significant holdings in Betfair, Screen Select, Shazam, Moreover, and others.
I'm not a VC but do follow a
I'm not a VC but do follow a VC like business model.
For me, it works!