For example, say I'm looking for 100k & have nothing more than an idea and a great business action plan. What kind of deal is an Angel looking for?
The terms are based on how an Angel investor views your company as well as your startup’s value in the market. So they are looking at your impact potential within your sector and industry, the size of any recent exits, the willingness to enter into a deal, and vice versa for the entrepreneur.
Answered 5 years ago
Especially in niche markets that you believe in (hardware & crypto, for example). If you know someone well enough you might get access with $50k–$100k, which is what you would put on 2–3 deals anyway. They’re going to do a better job than you do (although I’m not saying they’ll provide a great return…
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Answered 5 years ago
🤔What Do REAL Terms of a $100k USD Angel Deal Look Like❓
🔷1) Mentality
We're often uneducated, ignorant & or skeptical of the people, companies & or organizations that have access to the information we need.
Learn as quickly as possible by failing faster & pivoting your mindset towards long-term growth instead of short-term stability.
🔷2) Valuation
We're often uneducated, ignorant & or skeptical of how REAL businesses are valued in the marketplace, let's look at asset based valuations for simplicity:
✅Assets (cash flow, improve your balance sheet before you get contacted by sponsors or investors)
✅Ratio (analyzing your company's price to sales ratio)
P = Current Share Price of Company
E = One Year's Worth of Earnings
P/E
P = (insert value multiplier) x E
For example:
P = 10 x E
✅ Discounted Cash Flow
What is your company's income (earnings & cash flow) projected looking into the future, then you create the discount rate based on the difference between future projections & current income (earnings & cash flow).
🔷3) Management
✅Best Practices
✅Systems (Soft Systems & Hard Systems)
✅Processes
Angels funding ventures are always looking for the return of their investment, how you provide this return is a process called...
💸A Fundable Strategy™😎
✅ Mission Statement (Personal & Company Missions Included)
🗨 Why are we in existence, what can we help the world achieve through meaningful collaboration?
✅ Vision Statement
💭 Core Values
✅ 5 Year Goals
✅ SWOT Analysis (viewed at present time but also reflecting new goals & strengths)
💭 Weaknesses
🗨 Opportunities
💭 Threats
✅ The GSWOT Table
✅ Strategic Initiatives (these are what groups work with)
🔷Measurable Objectives & Outcomes:
✅A set of high-performance & strategic goals & initiatives for the upcoming year, through five or more years out...
✅ The leadership team, mandate, & commitment is strengthened
✅ A clearly articulated direction that will be consistently shared with all staff
✅ A commitment towards ongoing bi-weekly appointments to reinforce the progress of strategic issues & examine issues, if necessary, associated with the strategic initiatives
🔷Strategic Planning Session:
✅ Vision
✅ Mission
✅ Strategy
✅ Action Plan
🔷 A Mission Statement:
Articulation of the purpose of the company, basically why it exists, what it does & for whom. It should serve as an ongoing guide that spells out what the company is all about. The mission should focus on the here & now.
🔷 A Vison Statement:
Outlining the goals & aspirations for the future. It creates a mental picture of a specific medium-term target & should be as a source of inspiration.
Thank you for sharing your question with us, I appreciate your hypothetical role-playing skills with only an idea & great business action plan!
🤔Would you be open to a call for follow up questions with me?
🏅CLICK the Link BELOW for your FREE Discovery Session:
Answered 5 years ago
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