Archive for the ‘Q&A’ Category

Q&A: Angel Pro-rata

This Week’s Question:

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Last Week’s Question & Answer:

 1) The Number of U.S. Seed VC Firms has increased at a rapid pace since 2010.  What explains the increase?
  • 30%     Over-supply of capital due to bull market
  • 52%     Demand for capital is driving supply…  More startups founded & gaining early traction as entry barriers and costs have decreased
  • 4%       Better knowledge & picking ability at very early stages has caused VC                investment capital to move to earlier stages
  • 4%       Higher return potential of seed has caused VC investment capital to move to earlier stages
  • 9%       Superior returns in VC have caused investors to allocate higher percentages of portfolio to VC
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2) Which Investor Stories Segment is your favorite?
  • 5%        Why I Passed
  • 15%      Why I Invested
  • 31%      My Investing Strategy
  • 20%      Exceptional Founders
  • 29%      What’s Next?
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Q&A: Favorite Investor Stories?

 

This Week’s Question:

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Last Week’s Question & Answer:

Which Syndicate name do you like best (please select up to two from the below list)?

Syndicate_Name


Newsletter 8: Q&A (answer for FREE ticket to PreMoney)

 

Answer(s) to Last Week’s Question(s):

1) What is most likely to change the conversation around unicorn companies?

  • 20% A unicorn company going under
  • 26% A pullback of private investment in later stages, forcing earlier exits
  • 52% Tech bubble bursts
  • 0% A new mythical name that replaces ‘unicorn’
  • 2% Other

This Week’s Question(s):

An LP invests $100k in a Venture Fund and another $100k in a Syndicate. The Venture Fund is a standard 2/20 (mgmt fees on committed capital) structure w/ a 10-year life. The Syndicate lead takes a 15% carry and AngelList takes their 5% carry.

  • Both the fund and the syndicate invest in the same 10 companies at the same terms
  • Both the fund and syndicate invest at the same time in each company
  • The fund invests the same amount in each company
  • The syndicate invests the same amount in each company
  • Out of the 10 investments made, five fail completely
  • Two of 10 return at ~1x
  • Two return at ~3x
  • And one company has an out-sized return, yielding a total portfolio return of 5x on invested cash, for both the fund and the syndicate.

So the question is…

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Listener Feedback

Pete Maglio

The takeaways to end this episode are fantastic! Thanks @TheFullRatchet & @BenEinstein! pca.st/Fey4 #smartHardware #startups