About Paul Kedrosky
|
| Dr. Kedrosky is currently the Executive Director of the William J. von Liebig Center in San Diego, California. Using an innovative seed capital program, the Center catalyzes the commercialization of technologies from the internationally-ranked University of California, San Diego. Dr. Kedrosky is also a venture investor with Ventures West, Canada's largest institutional venture capital firm, where he is most active in consumer technologies and software. He is currently on the board of Marqui Corporation, a marketing automation software company. |
Recent Article:
Angels? Sure. VCs? Sure. But Not Both.
- For more on Paul Kedrosky visit paul.kedrosky.com
This paper's result makes me think we need to augment the martini model of venture investing with a martini and olive model:
We examine the impact of business angels on 182 Series A financings and subsequent company outcomes. Our studied rounds have a varied mix of business angel and formal venture capital investors (VCs). We find that when only angels participate in a financing round and VCs are absent, control rights are more entrepreneur-friendly, legal expenses are lower, and investors are more geographically proximate to the company. Such angel-backed companies are less likely to fail and are more likely to have a successful liquidity event. We find that companies financed exclusively by VC investors also perform well, particularly when deals are large. Companies financed by both angels and VCs experience inferior outcomes. Our results suggest that entrepreneurs consider business angels to be preferred investors and VCs investing in small deals face adverse selection. For larger deals, where deeper-pocket VC participation is required, these roles reverse and angels face adverse selection when investing alongside powerful VC syndicates. [Emphasis mine]
Like this article? Share it with your friends
 |
Related Articles |
|
 How Many Angels is the Right Number
|
| |
 I got the following question via email today:
All things being equal and all things being perfect, is it better to have more or less 'angels' in the mix? I can come up with reasons for both more and less. Also, i...
|
|
Angels? Sure. VCs? Sure. But Not Both.
|
| |
 This paper's result makes me think we need to augment the martini model of venture investing with a martini and olive model:
|
|
Angel Investors - Due Diligence
|
| |
Due diligence is the process of researching an opportunity to come to a decision whether an investment should be made or not. There are typically 5 key areas that angel investors will look at in their due diligence:...
|
|
Home Based Business--Start Up Money From Angels
|
| |
Angels are probably the largest source of risk capital in the small business economy, and while three-quarters of successful small businesses used their founder's money for start-up, so-called angel investors may be...
|
|
Who Are Angel Investors
|
| |
Entrepreneurs often talk about needing angel investor money to launch their companies. When asked about their financing plan, they are heard to say, "I am going to raise $500K from angels." When asked what their str...
|
|
|
More
Paul Kedrosky
|
|
![[Get Copyright Permissions]](http://license.icopyright.net/images/icopy-w.gif){kind=small}
