Founder remuneration

Founders have a dual function. Firstly shareholders, secondly as managers. They need and deserve rewarding in each role. Getting the balance right isn’t easy, especially at the start-up and seed stages. Founder remuneration – the considerations In start-ups and scale-ups, there is never enough money to go around. There just isn’t. Maybe there should be…

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Structuring a deal

Continuing our ongoing series on technical aspects of structuring a venture investment, we’re now going to look at Advanced Subscription Agreements (ASAs) and convertible loans. David Smith sets out why these are popular instruments, and some of their drawbacks. As we refer to the tax environment, note our usual caveat: this post is not tax…

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Valuations in early-stage investments

Valuations in early-stage investments Recent posts have focussed around the technical aspects of structuring a transaction. We’ll be returning to that theme, but in the meantime, we’re going to take a look at the massive issue of how venture capital investors value a business when they first invest. Valuation is a big topic. Books galore…

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The Portfolio Effect of EIS

Relief against income tax of losses on EIS investments. Most investors’ view of EIS relief is focused on the level of day one relief against income tax. There are, of course, plenty of other tax benefits of EIS investing. And a distant second is the possibility of some loss relief to mitigate the pain if…

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Business coworkers discussing managing the cap table

This is the fourth in a short series from DSW Angels on what your choices are in structuring a venture deal, whether as investor or founder. This blog examines the management of the cap table and avoiding traps affecting company control. Behind the spreadsheets, rules, and percentages there are real-world issues relating to management of…

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Leaver shares and option vesting

This is the third in a short series from DSW Angels on what your choices are in structuring a venture deal, whether as investor or founder. This blog examines structuring for the vesting of founder shares and for employee options – looking at both sides of the debate. What is vesting anyway? It’s a VC…

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venture capital

This is the first blog in a short series from DSW Angels on structuring a venture deal, whether as investor or founder. The focus of this blog is on leverage and its role in a venture capital funding structure. While we have our own structuring preferences, who’s investing and specific circumstances matter. First principles: what…

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dsw angels investment committee_1

DSW Angels, the business angel network focused on UK regional scale-up companies, has appointed two new members to its Investment Committee. The arrival of Martin Beaumont and Nick Woodrow comes as DSW Angels continues to grow its presence in the regional venture capital market. Martin, an investor and non-executive director, is the former CEO of…

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new angel network

DSW Angels, the business angel network, is celebrating a milestone after receiving its 1,000th application for funding within two years of its launch.   The business, which was started in the North but expanded to other regions in recent months, has also become one of the largest in the UK with over 100 investors. Last year it was selected as the first partner on the British Business…

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Creating a Portfolio of Angel Investments

Creating a Portfolio of Angel Investments By David Smith The general risks of unquoted investing Each of the Dow Schofield Watts Angels investment circulars states that you are significantly more likely to lose your money than to make money. This is more than just boilerplate. We do want investors to take it to heart and…

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