{"id":4818,"date":"2011-10-12T17:45:16","date_gmt":"2011-10-12T21:45:16","guid":{"rendered":"https:\/\/futurpreneur.ca\/?p=4818"},"modified":"2024-02-14T10:39:40","modified_gmt":"2024-02-14T15:39:40","slug":"financing-your-innovation-angels-dragons","status":"publish","type":"post","link":"https:\/\/futurpreneur.ca\/en\/blog\/financing-your-innovation-angels-dragons\/","title":{"rendered":"Financing Your Innovation: Angels &#038; Dragons"},"content":{"rendered":"<p><strong><em>Sandy Robertson, Georgian Angel Network, Collingwood, ON, CYBF Mentor<\/em><\/strong><\/p>\n<p><strong>Financing Your Innovation Series \u2013 Part 2 of 3<\/strong><\/p>\n<p>Having exhausted all personal &amp; family\/friends cash resources, you next go to third parties for equity funding. The show Dragons\u2019 Den has been a blessing (raising awareness about private equity for start-ups) and a curse (the made-for-TV format distorts the actual process) for real-world angels. The angel market in Canada continues to evolve and become more sophisticated, and various deal structures are possible.<\/p>\n<p>Simplicity in deal structure benefits all parties. However, negotiations become more complicated when different perspectives about valuation turn up. There is, understandably, a hard-wired gap between what the entrepreneur feels their innovation is worth and the pre-money valuation a new investor feels is appropriate in order to generate an acceptable ROI for them. All mathematical models aside, valuation is a black art and is completely situation\/company-specific.<\/p>\n<p>This negotiation is, unfortunately, where many deals fall apart. You, the entrepreneur, need to keep in mind that \u2018smart money\u2019 is worth a lot more than the cash investment alone \u2013 intellectual and experiential capital is a significant part of value that angels have to offer.<\/p>\n<p>See the entire <em>Financing Your Innovation <\/em>series:<\/p>\n<ul>\n<li>October 5, 2011: <a href=\"..\/blog\/founders-family-friends\/\">Part 1 \u2013 Founders, Family &amp; Friends<\/a><\/li>\n<li>October 12, 2011: <a href=\"..\/blog\/angels-dragons\/\">Part 2 \u2013 Angels &amp; Dragons<\/a><\/li>\n<li>October 19, 2011: <a href=\"https:\/\/futurpreneur.ca\/blog\/angels-vcs\/\">Part 3 \u2013 (More) Angels &amp; Venture Capitalists<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Sandy Robertson, Georgian Angel Network, Collingwood, ON, CYBF Mentor Financing Your Innovation Series \u2013 Part 2 of 3 Having exhausted all personal &amp; family\/friends cash resources, you next go to third parties for equity funding. The show Dragons\u2019 Den has been a blessing (raising awareness about private equity for start-ups) and a curse (the made-for-TV [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,16],"tags":[],"class_list":["post-4818","post","type-post","status-publish","format-standard","hentry","category-futurpreneurs-and-partners","category-money-and-finance"],"acf":[],"_links":{"self":[{"href":"https:\/\/futurpreneur.ca\/en\/wp-json\/wp\/v2\/posts\/4818","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/futurpreneur.ca\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/futurpreneur.ca\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/futurpreneur.ca\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/futurpreneur.ca\/en\/wp-json\/wp\/v2\/comments?post=4818"}],"version-history":[{"count":0,"href":"https:\/\/futurpreneur.ca\/en\/wp-json\/wp\/v2\/posts\/4818\/revisions"}],"wp:attachment":[{"href":"https:\/\/futurpreneur.ca\/en\/wp-json\/wp\/v2\/media?parent=4818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/futurpreneur.ca\/en\/wp-json\/wp\/v2\/categories?post=4818"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/futurpreneur.ca\/en\/wp-json\/wp\/v2\/tags?post=4818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}