Fast no, fast maybe, never a fast yes
from Angels Beacon by TBHA Hosted by The Brutally Honest Angel
An angel's mandate (yearly budget, pace and the fields where the angel adds more than money) lets an angel decide a pass before a pitch starts, and it makes a fast no and a fast maybe easy while keeping every yes slow. This episode is for new angels who want a written rule for which startups they back and how quickly. In this episode A mandate covers money, pace and domain, because an angel invests resources, network and name as well as cash. A twenty thousand dollar yearly budget at one company a quarter gives four cheques of five thousand dollars; in a 2014 piece reprinted by the Angel Capital Association, Marianne Hudson wrote that a lot of angels write cheques of 5,000 to 50,000 dollars and advised splitting the pot into 20 equal shares. A round far bigger than the angel's cheque is rarely worth chasing outside the angel's field; Wiltbank and Boeker's 2007 Kauffman-supported study found investment multiples twice as high for ventures connected to the angel's industry expertise. Every maybe needs disciplined contact with the founders and money math toward a portfolio of ten to fifteen startups, which takes two and a half to nearly four years at one company a quarter. Sources Marianne Hudson, Angel Capital Association, What Every Angel Should Know Before Writing Their First Check (Forbes.com, 28 August 2014, reprinted by the ACA) Robert Wiltbank and Warren Boeker, Returns to Angel Investors in Groups (November 2007) Produced by The Brutally Honest Angel. Educational only. Not investment advice.
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A mandate lets an angel decide the no before the pitch: yearly budget, pace and the fields where the angel adds more than money. This episode splits a twenty thousand dollar year, sets fit against round size, and explains why a no and a maybe should come fast and a yes never should. Angels Beacon by The Brutally Honest Angel. Educational only.
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