As an Angel Investor, before investing in a startup, you might ask:
- How do I know when I’ve found the right opportunity?
- How much is the business worth?
- What should the terms be?
Assessing and valuing a company before it has revenue is a difficult task. There are no agreed upon or standard approaches, unlike companies that have a longer track record with historical financial statements, assets, and revenue. There are numerous unknowns and risks. Due diligence is not about eliminating risks and valuation is not a science. Due diligence is an exercise to spot and avoid the obvious pitfalls, understand the risks, gather information to support your valuation, and ultimately negotiate your terms. In the third session of their education series, “Becoming an Angel Investor 101,” the team at Urban Capital Network will present and discuss the role and principles of diligence, valuation strategies and negotiating deal terms.
During the session, you can expect to learn the following:
- Key diligence focus areas and principles
- What to look for and ask during due diligence
- How to avoid common mistakes
- How to assess and apply valuation factors and criteria
- Term sheet basics and negotiation points
What's Happening at The Ion
MINDFUL MORNING: A SHORT INTRODUCTION TO MINDFULNESS