Dividends are the new exit

by Kamal Hassan As an angel investor, your number one question when making an investment is (should be) ‘how will I get my money back again’? The number one assumption is that there are only two ways to do this: either through an ‘exit’ (a sale of the company) or an IPO (which is very rare today). So as an entrepreneur you have a mission to build your company and […]

‘Dumb’ vs. ‘smart’ investors

by Kamal Hassan If you are raising money, you may encounter the phrases ‘smart’ and ‘dumb money’, as a way to describe different types of investors. As an entrepreneur, you may wonder: which is better for me. should I try to get smart or dumb money? The first thing to keep in mind is that typically capital seems scarce. As an entrepreneur, you may not care who gives it to […]

Secrets of angel investing [2]

by Kamal Hassan One of the things that I didn’t expect about becoming an angel investor was that in many ways successes hurt more than failures. How can that be? Well a dirty little secret of angel investing is that it is very common for successful companies to not share the success of the company with the angel investor. This typically happens at a later, professional, round of financing. The […]

Secrets of angel investing [1]

by Kamal Hassan I was sitting yesterday with someone who wants to become an angel investor. This young man asked me for my advice on angel investing (although I normally blog for entrepreneurs, I have also been an angel investor for ten years). Here’s the wise advice of the older, experienced angel investor: The first thing you need to do is make two strategic choices: 

The SEC gives, and takes away

by Kamal Hassan There has been a lot of celebrating recently over the SEC’s lifting of the ban on general solicitation by entrepreneurs. For those (many) of you who don’t know, it has actually been illegal to tell people you are raising money. You can’t place an ad in the newspaper or online saying ‘we’ve got this great business and are looking for investment’. So that makes any crowdfunding platform […]