Midterm Study Guide Flashcards
Angel Investor
individual investor
Private Placement
Laws that prohibit the public offering of securities without public registration
Offering includes any sort of promotion or announcement of sale
Public registration is too expensive for startups
Accredited Investor
Investors that can be approached in a Private Placement
An angel is an Accredited Investor if he has a new worth of $1,000,000 (excluding his home) or income above $200,000 or $300,000 for a married couple
Angel groups in Kentucky
Bluegrass Angels (Lexington) Enterprise Angels (Louisville) Anchorage Angels (Louisville) Queen City Angel (Cinci, Northern KY) Kentucky Angel Investors (Statewide)
Examples of government funding for start-ups
Grant programs for technology ventures
- The Kentucky Science and Technology Corporation
- The Federal Small Business Innovation Research program
- Small Business Technology Transfer program
Grant
Form of funding that does not need to be repaid
“Forgivable loan” if certain activity happens
Crowd Funding
If certain criteria are met, start-ups are permitted to publicly offer securities to non-accredited investors
Made possible to sell small investments online
Made possible by the Jobs Act
VC Fund
Private investment vehicle created to make investments in start-up companies
No public shares
No public disclosure requirements
Famous VC Funds
Sequoia Accel Kleiner Perkins Andreeson Horowitz Union Square General Atlantic Bessemer Ventures
Local VC Funds
Chrysalis Ventures
Drive Capital
Strategic Investor
Actual operating company
Ex) Google
Factors determining possible investors
Stage of start-up Size of the raise Geography Type of business Valuation
Resources for potential investors
cbinsights. com
angel. co
crunchbase. com
gust. com
ftpartners. com (fintech)
