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Finance: What are Angel Investors and Seed Funds? 8 Views
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What are Angel Investors and Seed Funds? Angel investors provide the funds for small start-ups. They are usually family and friends (not institutional or highly experienced investors) and make one-time investments. Seed funds refer to the money that angel investors put in. They are used to start a company and give the investor a percentage of the company in equity.
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Transcript
- 00:00
Find it a la shma What are angel investors and
- 00:05
seed funds Just call me angel Thanks That's All right
- 00:14
It's early in the morning here and we just do
- 00:16
that sometimes Yeah All right Well an angel investor is
- 00:19
typically i'm sorry Won't sing again An angel Investors typically
Full Transcript
- 00:23
someone who was wildly successful in an entrepreneurial venture of
- 00:27
their own They feel a kind of moral obligation to
- 00:31
recycle their winnings And in most cases very very early
- 00:35
stage companies are so extremely risky with failure rates over
- 00:40
ninety nine percent Well that it takes some kind of
- 00:43
angel to come in and invest the first few hundred
- 00:46
grand Get them started building that nose picking device the
- 00:50
world has always wanted no And since in most cases
- 00:55
very early start ups have absolutely no idea what they're
- 00:59
worth So many initial angel investments carry no price meaning
- 01:05
that there was only one term carried by the money
- 01:08
invested It will be valued at say a ten percent
- 01:13
or whatever number discount toe whatever valuation The next round
- 01:18
if there is one values the company at while the
- 01:22
first few million bucks into google by a small handful
- 01:25
Of already successful silicon valley types ended up being converted
- 01:29
into stock in their initial or a round which was
- 01:33
done at a whopping almost seventy million dollars It was
- 01:37
done at the height of the first internet bubble and
- 01:39
while timing is everything sometimes google's original investment netted it's
- 01:44
angel investors some ten thousand times their money and spawned
- 01:49
a whole many industry in angels getting together hoping tio
- 01:54
you know do more googles When angels pool their money
- 01:57
they create what is called a seed fund think seeds
- 02:02
planted in the ground to eventually bear fruit You know
- 02:05
like that And when seed investors are right yeah sometimes
- 02:08
they make that ten thousand times their money thing and
- 02:11
yahoo google facebook and a small handful of others all
- 02:15
live in this lofty world of ten thousand xers We're
- 02:19
on ly the loftiest of angels fly q's call me
- 02:24
change All right i'll stop Hey if you've got google
- 02:27
money and you can call me whatever you want No
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