ScoreBig (EF, Wednesday, Week 6)
entrepreneurial-financeyear-twoTypical angel investments:
-- Small chunk of a new venture that might be huge (i.e. an early-stage investment in the next Google)
-- A large chunk of a new venture with a mid-size exit (lower risk and 5x upside, not 30x upside)
==> Angels often fund less capital-intensive projects; not as concerned with IRR (like VC) as cash-on-cash returns.
Lean startup vs. "plump" startup: some kinds of business models (cash curve with long tail or deep trough) do not make sense for lean startup-type methodology.
If the success of your venture depends on managing relationships with a bunch of professional sports teams, you probably cannot introduce unfinished products, found with 25-year-olds who live on ramen, etc.