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Across the world, various economic development organizations, government agencies, and non-profits are putting in admirable and well-intentioned efforts to develop startup ecosystems. Very little time and effort is spent helping professional, full time investors raise capital for venture funds.
These are people that didn’t make their money through a tech startup or startup investing. Some of these folks are founders and CEOs, but not at high-growth tech startups. While they might be generally smart, they’re unsophisticated investors who don’t know what the market is for where you are.
It used to be that the only people who could even get into angel rounds were highnetworthindividuals that could write at least $25,000 checks—so if someone said they were an angel investor, you could assume this was their minimum check size. With new technology should come new terminology.
PARTNER CONTENT By George Teixeira, CPA, MST Tax Partner, Anchin The Qualified Small Business Stock (QSBS) Exclusion, a vital provision for founders, investors, and employees of small businesses, offers a significant tax advantage by exempting capital gains tax on qualifying stock.
As of today, 30% of the fund has been soft-committed with plans to segment the remainder amongst family offices, ultra-high-net-worthindividuals, and institutional investors. Read more Bain Capital Invests in Sales Tech Startup Apollo.io Source: Businesswire Can’t stop reading?
I have an investor from a huge multi-generational Bolivian shipping family and they’d never attend anything like this. How would you know if I showed up to an investor conference, took meetings with startups, and acted serious about putting money to work in venture on behalf of a family office whether I was telling the truth?
BharatRohan, a Gurugram, India-based agtech startup specializing in drone-based hyperspectral remote sensing, closed a $2.3m Backers included Villgro Innovation Foundation, Caspian, RevX, and Venture Garage (with a group of Ultra HighNetWorthIndividuals as investors), marking a strategic combination of debt and equity financing.
Full disclosure: I'm an investor in a stealth daily fantasy sports company. Generally, creating rules to protect individuals from nefarious business practices or to leverage things like taxes fairly and consistently is a good thing and I support it. Plus, protecting people from themselves can have unintended consequences.
Yet, the lessons learned from their $8mm round of funding announced this week are still widely applicable to every startup--particularly food startups and those in four walls retail that struggle through the traditional venture process. Rounds aren't close--they either happen or they don't, and an investor on the fence is a pass.
Major funds including Aware Super and Hostplus were investors. But in a partial victory for fund groups which opposed the rules, the Securities and Exchange Commission did not proceed with proposals that would have expanded funds' legal liability and outright banned arrangements that allow some investors special terms.
I think a lot of startup founders are actually the opposite, where it’s like we choose to go to the moon, not because it’s easy, but because we think it’s going to be easy. And I always wondered why huge bureaucracies could sometimes lose to startups. That’s pretty rapid growth for a a startup.
I worked for two small and medium sized businesses owned by the same investor group and cut my teeth on those. In either of those cases, you weren’t working as an investor, right? Make smart investment decisions and have investors to back you to do them right. You were a researcher, analyst, capital raiser.
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