Terri answers her producer Jacqueline’s questions about angel investing. This is the third episode in the series on angel investing. Main topics: pitch events, demo days, evergreen fund, fundraising rounds, and what Terri looks for in a pitch.
Show Highlights
- Terri answers Jacqueline’s questions about pitch events and demo days
- Terri talks about the Ada program in Berlin to encourage more women to be founders and entrepreneurs where she will be a mentor in their first cohort.
- Terri talks about the SwissNex event last year where she met Anne Cocquyt of The Guild where she had to ask to be on the all-male panel and the facilitator said they would be declaring the king of the evening. Terri had to shout out “or queen.” The winner ended up being a female founder.
- Terri comments on how she dislikes pitch events where winners are declared but there’s no actual financial reward.
- Terri attends events to learn about what is going on, the latest technology, and potentially find new startups to invest in. She also looks for founders/startups to help even if she doesn’t invest in the startups.
- Terri clarifies her understanding of an evergreen fund for her own investing.
- How long does it take a company to exit? Typically, 7-10 years. But it depends on the business and the exit strategy (IPO, acquisition).
- What is an accredited investor? Terri talks about the discussions around investing in startups and the SEC requirements and that the net worth and income requirements limit who can invest regardless of knowledge and experience.
- Terri shares what she is listening for at the various pitch events. It depends on which hat she is wearing. In addition to the standard pitch elements, she is looking for ability to communicate.
- Is Terri looking for leadership style in the pitches? Indirectly, yes.
- The point of the pitch is to pique interest for follow up conversations.
- In early stage startups, you are generally investing in the team.
- Terri is excited about one of her investments, Zum, that just announced their $19M Series B raise. Zum is on demand and scheduled rides for kids ages 5-15. They have a female co-founder/CEO.
- At what point do big VCs invest in startups? What are the various rounds? Seed, Series A, Series B, etc. Terri talks about the current landscape with more money coming into startups earlier and VCs investing earlier in the startups. Geography impacts this as well.
- Terri talks about when she invests in convertible notes versus priced rounds.
- Terri is excited about the first deal, Sendaride, she is syndicating on AngelList. (This is not a solicitation for funds). Terri is sharing out to folks in her network who she knows are accredited investors to get them onto the AngelList platform. Terri found getting onto the platform a bit confusing without a specific deal to invest in.
- Terri and Jacqueline were saved by the bell when Terri’s neighbor, Sean, came over with a cocktail to discuss cryptocurrency, blockchain and ICO’s.
Call to Action
Subscribe to one podcast or one newsletter about angel investing and get into the groove of listening and reading. Feel free to reach out to Terri if you have any questions or comments or other suggestions for resources for new angel investors. PilotingYourLife@gmail.com
References in the Podcast
- The Guild: https://theguilded.org/guild/home/index.html#/
- Founder Institute: https://fi.co/
- Sand Hill Angels: http://www.sandhillangels.com/
- Terri’s Medium post on what she looks for in a pitch: https://medium.com/@terrihansonmead/pitching-to-angel-investors-or-at-least-to-me-30696345ebe6
- Y Combinator: http://www.ycombinator.com/
- 500 Startups: https://500.co/
- Acceleprise: http://acceleprise.vc/
- Alchemist Accelerator: http://alchemistaccelerator.com/
- Ada Accelerator (Ignore Gravity): https://www.ada-accelerator.com/
- SwissNex: https://www.swissnexsanfrancisco.org/
- Terri’s Medium post on cryptocurrency, blockchain, ICOs: https://medium.com/@terrihansonmead/cryptocurrency-and-ico-resources-55766cae29e
- GoBambino: http://www.gobambino.com/
- Ben Narasin: https://www.linkedin.com/in/bennarasin/
- NEA: http://www.nea.com/
- Accredited investor requirements: https://www.investopedia.com/terms/a/accreditedinvestor.asp
- SeedInvest: https://www.seedinvest.com/
- Jason Calacanis: http://calacanis.com/
- Launch Festival: https://www.launchfestival.com/
- Jobs Act: https://en.wikipedia.org/wiki/Jumpstart_Our_Business_Startups_Act
- Clara Brenner of Urban Venture Fund talks about the Series A crunch at a Founder University event: http://thisweekinstartups.com/founder-university-clara-brenner/
- Sequoia Capital: https://www.sequoiacap.com/
- AngelList: https://angel.co/
- Sendaride: https://sendaride.com/
Contact
You can follow Terri on Twitter at @terrihansonmead or go to her website at www.terrihansonmead.com or on Medium: https://medium.com/@terrihansonmead.
Feel free to email Terri at PilotingYourLife@gmail.com.
To continue the conversation, go to Twitter at @PilotingLife and use hashtag #PilotingYourLife.