
Stealth Startup Investing: Risks Before You Wire Money
TL;DR: A stealth startup is a company that keeps its product, team or customers private on purpose. Investing in one means writing a check against claims you can't independently see. You can still ve…

409A Valuation: What Angel Investors Should Check
TL;DR: A 409A valuation is an independent appraisal of what a private company's common stock is worth for tax purposes, used to set employee option strike prices. It is not the price you pay for pref…

Convertible Notes vs SAFEs: An Angel's Downside View
TL;DR: According to Almanac , citing the Angel Capital Association's 2020 Angel Funders Report, 37% of angel deals in 2019 used convertible notes, and SAFEs have gained ground since. If you write che…

Cap Table Basics: What Every Investor Must Check
TL;DR: Carta's data puts the median Series A option pool at 15% of fully diluted equity, and every point of it comes out of your stake, according to Carta . Read a cap table for three things: how lat…

What an Angel Investment Network Actually Does
TL;DR: An angel investment network is a membership organization of accredited investors that screens startups, splits due diligence work among members, and pools capital through syndicates or single …