ENT 640 Week 8: Harvesting

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ENT 640 Week 8: Harvesting “Harvesting is the endgame of early-stage investments, the financial score by which you will measure your success. (pg.287)” There are seven harvesting methods, five are positive ones and two are negative. Positive: Walking Harvest Owners take cash out as it is earned or have positive cash flow and continue to […]

ENT 640 Week 7: Supporting

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ENT 640 Week 7: Supporting Angel investors are very useful beyond money, they provide years of wisdom of seeing start-up companies win and fail. Most angel investors have either started or helped start companies in the past, as well as having invested in many start-ups. So they know what to look for and what you […]

ENT 640 Week 6: Negotiating

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ENT 640 Week 6: Negotiating Negotiating between entrepreneur and investor really comes down to the investor wanting to negotiate terms or not. Newer investors tend to want to negotiate and build relationships with the entrepreneur whereas most winning investors do not feel the need to negotiate terms. “Angels who do negotiate are more likely to […]

ENT 640 Week 5: Structuring

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There are three main fundamental structures that are involved in angel investing according to the book Winning Angels: the 7 fundamentals of early stage investing. The first main structure is common stock. This relies on the entrepreneur being able to source and evaluate. It is key to make sure the entrepreneur is very knowledgeable and […]

ENT 640 week 4: Valuing

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“Valuation is what you are willing to exchange for something else that you want.” The five approaches to valuation with 12 methods: Quick and easy $5m limit – never invest in a startup that is valued over $5 million Berkus method – estimate the value of the company based on a simple formula. Sound idea […]

ENT 640: Week 3 Evaluating

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Week 3: Evaluating In the book Winning Angels: the 7 Fundamentals of Early Stage Investing, the authors suggests that there are four elements to consider when evaluating investment opportunities. These four elements determine if the opportunity will lead to failure if one is missing or if it is a bad combination of the four elements. […]

ENT 640 Week 2: Sourcing

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Blog week 2: Sourcing What is sourcing? “Sourcing is evaluation” (p.33). The Seven Fundamentals of Early Stage Investing, suggests using 18 sourcing activities to sift through the possible investments before deciding on the best one. Sourcing is identifying projects worth investing in. Through these 18 activities it takes a lot of time but worth the […]