By guest authors Irina Patterson and Candice Arnold Irina: And what do you think angels could do to be more successful? Bob: There’s a couple of things – fantastic question, thank you for asking that. One of the things I think that we can do better is not filter out the companies that we invest
By guest authors Irina Patterson and Candice Arnold Irina: What about your investment type? Bob: Generally we’ll do a convertible debt into an equity instrument, but that equity instrument is usually preferred stock. We have done common stock deals. Maybe 25% of the deals we do are common stock. Some members are okay without the
By guest authors Irina Patterson and Candice Arnold Irina: You already told me that for businesses that don’t get invested in, you send them a nice notice and maybe tell them to work on their businesses, right? Bob: Yeah. We actually have a category that we put a lot of businesses into; it’s called mentoring.
By guest authors Irina Patterson and Candice Arnold Irina: As far as the total available market for an idea, do you have any recommendations for that? Bob: Again, total available market, total addressable market, and the amount of market you’re going to capture are all a function of what that return is and how much
By guest authors Irina Patterson and Candice Arnold Irina: What is the typical valuation of the companies you invest in? Bob: Okay. This is my soapbox, and this is what I tell entrepreneurs. This is what I told the guys last night. Valuation is a surrogate for return. If you can empathize with an angel
By guest authors Irina Patterson and Candice Arnold Irina: How many investments have you done in the past 20 months? Well, I guess each member did a different number of investments? Bob: Exactly. I’ve got some numbers at the high level for the group. We average about nine to twelve investments per year as a
By guest authors Irina Patterson and Candice Arnold Irina: And who does the screening? Bob: Pasadena Angel members; they’re actually investors. Our executive director will look at everything that comes in. And, again, if the guy’s in North Carolina – and I’m not trying to pick on North Carolina or North Dakota or North Sasquatch
By guest authors Irina Patterson and Candice Arnold Irina: You’re trying to bring some efficiency to the process, right? Bob: Efficiency is certainly part of it. Effectiveness is another part of it; understanding correlations and causes is another part of it, so yeah, I think all those things go hand in hand. Irina: So, you get