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The best, but least common, way for you to sell your shares is almost always if your startup gets so big that
I’ve known a lot of paper millionaires who have gotten crushed because they never sold shares or diversified when they could. In
The third, and most common way, an angel makes their money is when a startup is bought.
I withheld my signature until I extracted $100,000 in advisor shares in the acquiring company that were very tightly bound to me, my LPs (limited partners), and my syndicate.
“What problem do you solve?” is a classic venture capitalist question that is sometimes phrased as “Is your startup a vitamin or a painkiller?” or “What pain do you remove?”
like to put pain points into two buckets: Indiana Jones and Louis C.K.
Eventually, when bandwidth and server storage costs plummeted, Dropbox pioneered a solution that solved the very real problem of lost documents: the cloud.
As I mentioned, some startups are so delightful to use that people can’t live without them and will pay a premium for them. These
There are some investors who feel it’s the market that makes the startup. They will look at the size of the insurance, food, or transportation industries and say, “Technology is going to massively impact these industries—let’s
These management fees are an advance on returns paid to venture capitalists by LPs every year to cover their salaries and overhead. It’s typically 2 to 3 percent of the total amount raised—every single year.
