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Company Valuation Videos 175 videos

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Finance: What are Angel Investors and Seed Funds? 8 Views


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Description:

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.

Language:
English Language

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

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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