Make sure your angel round doesn’t make you walk off a pier, advises this post on the IBD BlogAngels tend to have higher valuations than venture firms. The angel investment instrument is often a bridge loan to the close of the Series A round. The problem with high valuations is they may stop the VC from investing. Angels must feel comfortable that a Series A will close. Otherwise, a bridge that doesn't get finished is called a pier, and you don't want to walk off of a pier.
We hear all the time about the amount of money that's available to fund startups. For example, that private equity funds invested over $ 3.3 billion in just the first 3 calendar months of the current year. That VCs are always looking out for good deals as most of the plans they see merit little or no attention. That they invest in about 5-10 a year out of the 500-1000 business plans they get. And so on…But the truth is that a majority of deals that get funded are those that come through a referral or because the VC knows (of) the entrepreneurs; its natural because VCs don’t have the time to look at all the plans that they get to pick out the Rediff, Naukri, or Tejas Networks. Deals that come through some trusted source or through a trusted filtering process are therefore valued higher and rise to the top of the pile of business plans. It is therefore easy to see how many plans don’t get funded. And also how competitive the race to secure funding really is. Given this situation, wh