Tl;dr: They are smarter than you and I You are assuming that being technical is linked to business proficiency and startup competency, as well as the ability to LEARN. And that what you learn as a ‘business person’ is actually useful. Hm. Not all learnings are created equal, neither are environments. Great ideas come from either a: Technical insight, or …
What is the most unreasonable funding request you have ever received as an angel investor?
I was doing a talk at a startup event in Kuala Lumpur. This weird engineering type approached me after. “Hi Sir, Alex. I want to copy Facebook” “Ok. Like, what niche are you targeting?” We were walking down a corridor, leaving the room. I was a little distracted. “I want to copy Facebook” “But, there is already a Facebook, so …
Who becomes CEO among co founders?
Are you kidding me? It’s always obvious. No democracy should ever exist. The ‘nice version’ should be a benign dictatorship. It’s always easy to tell who the CEO is. If it’s not, then there is an issue. No VC believes in some hippy BS. I like to ask this question “Who is the CEO?” Then add “The Boss” to stir …
If a company raises funding today and gets acquired tomorrow, who keeps all the cash they raised?
Normal startup valuation math is the pre-money valuation, plus the investment which equals the post-money valuation. So the company is worth the post-money in VC terms, the fact there is a fat wad of moolah hanging around is irrelevant. VC terms are BS outside of startup land. The real world has its own way of doing things. Valuation in M&A …
What is an example of a 2 and 20 rule in venture capital?
Almost all investment firms have the same charging structure. They charge 2% of the fund base a year as a fee and then take 20% as a bonus when good things happen. A better question is what are the exceptions to 2 and 20? Almost every VC and hedge fund charges 2 and 20. 2% management fees to keep the lights on …