

You won’t find an angel in a dragon’s den - stevejalim
https://medium.com/i-m-h-o/1d7859b511fc

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ganeumann
I've always wondered about the implicit economics of some of these angel
groups. They seem to spend an awful lot of time getting to the point where
they can write a small check. If the expected value of the rate of return of
venture investments is ~20%, then it would seem they're barely making minimum
wage.

On the other hand, contra the article, I've made angel investments after a
pitch. Angels write small-ish checks, so making the founder do a song-and-
dance over the course of many meetings would be uneconomic for him. It's a bit
different if you're a partner at Greylock writing multi-million dollar checks.

~~~
hugorodgerbrown
In the UK there is a scheme called SEIS (Seed Enterprise Investment Scheme)
which gives investors 50% tax relief on equity investments up to £100K per
annum. This is great for startups, as it has resulted in a lot of people
investing for tax efficiency (and hence why most angels look to invest up £50K
in any single investment, so that they can spread the risk); however, the
side-effect of this is that a lot of people who would otherwise have simply
invested in markets have become 'angel investors'. Joining an investment club
seems like a sensible idea for these investors, however they often lack the
experience required to understand (or indeed empathise) with the entrepeneurs
they meet.

~~~
lucisferre
Canada has similar programs. EBC (in British Columbia) provides a direct 30%
refund on investment in eligible companies [1].

[1]: [http://www.pushormitchell.com/law-library/article/30-tax-
ref...](http://www.pushormitchell.com/law-library/article/30-tax-refund-
investors)

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fein
Competitive pitch events seem like they would be detrimental to doing good
business for both parties involved.

It's all just needless drama, as if multi million dollar investment deals
aren't exciting enough. These kinds of things should be dealt with in a
professional matter, especially given that I doubt most startups view their
product as the equivalent of an unpurchased property on a Monopoly board
during the tenth roll.

On an unrelated note, can someone please confirm my suspicions that the header
image used is from Guildwars?

~~~
andrew_gardener
I know what you mean, it looks like a lot like one of the loading images used
in GW2

I did a quick Google search though and found this
[http://jcbarquet.com/](http://jcbarquet.com/) which makes since since they
credit him in the bottom right of the picture

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Dilan
Just by having your product on Dragons Den you agree to giving them 5% of the
company irrespective if there is an investment made or not.

~~~
stevejalim
Really? That's partly a surprise, given the public nature of the BBC, yet also
not a surprise, given the value of the airtime one gets, even with a lame duck
of an idea.

Got a link/reference for this 5%? If not, how did you learn of this?

~~~
mistermann
I don't have a link but I'm pretty certain I've read that elsewhere as well
from a pretty trustworthy source. It's not terribly unreasonable, but does
seem a bit....predatory(?)

