Investing in Badly Dressed People.
Brad Feld linked to a ColoradoStartups.com post on the mindset of the angel investor; People. People. People is what I was taught, have experienced and the post seems to run along similar lines. (although it does introduce the rule that in Colorado they dont invest in well dressed people, while outside of there - they may not invest in badly dressed people.)
"To analyze the expected value, the investor must assess (you might say “guess”) two things. The first is the likely value at some point in the future. Generally this is arrived at by averaging (and often discounting) comps (values at sales of companies in a similar or related space). The second thing they must guess/assess is their faith in you to do accomplish something of a similar magnitude to the comps, generally expressed as a percentage."
"To analyze the expected value, the investor must assess (you might say “guess”) two things. The first is the likely value at some point in the future. Generally this is arrived at by averaging (and often discounting) comps (values at sales of companies in a similar or related space). The second thing they must guess/assess is their faith in you to do accomplish something of a similar magnitude to the comps, generally expressed as a percentage."
posted by redbarren at 6:27 PM
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