By: Ham Lord, Managing Director of Launchpad Venture Group and Co-Founder of Seraf-investor.com and Christopher Mirabile, ACA Chair Emeritus, Managing Director at Launchpad Venture Group and Co-Founder of Seraf-investor.com.  Readers can learn more at the Summit session, “Valuing Startups: A New and Nuanced Approach” with both Hambleton Lord and Christopher Mirabile speaking.

This post originally appeared on Seraf-investor.com

Having evaluated four common methods for valuing early stage companies, it's time to take a closer look at the Seraf Method which builds on everything great that has come before it (with the debt of gratitude acknowledged!), but adds key refinements necessary to make it work reliably in real life.

In a nutshell, the Seraf Method consists of four simple steps, which we have boiled down into three worksheets and a look-up table.

By: Marianne Hudson, ACA Executive Director

As we celebrate the beginning of 2018, the Angel Capital Association celebrates a good 2017 for many of our member angels, groups, and platforms.  Many of you had awesome exits, which is always something to celebrate!  Media outlets such as the Wall Street Journal, New York Times, Xconomy, and Forbes covered your milestones, great years, and recommendations to investors for great best practices or to entrepreneurs on raising equity capital.  And with #MeToo making big news in 2017, we especially appreciate our many members who provided true action to bring more women and people of color to angel investing.  Here are just some of our favorite articles about and by ACA members last year:

By: Marianne Hudson, ACA Executive Director

I thought you would be interested in a handy summary of the tax reform bill, the Tax Cut and Jobs Act, which was signed into law by the President just before the Christmas holiday.  It is by Bloomberg Government and was done before some small tweaks by the Senate, but should be pretty close to the final law.

There are three things to know about tax reform that affect angel investors and new companies, most of which ACA supported and promoted on Capitol Hill:

By Lucy Howell, ACA Director of Partnerships 

After a 20-year career in financial services, I joined the Angel Capital Association as director of partnerships exactly one year ago this month. Over the past year, I have met hundreds of angels, entrepreneurs, community development leaders, bankers, sponsors and policy makers interested in this critical niche. Angels are the biggest funders of high-growth new businesses, which created nearly all net new jobs in last 25 years. Yet, I am surprised by how little is known about this unique angel investing world. I thought it would be fun to recap my top 12 takeaways from the year to shed some light on this amazing group of people and the impacts angels have had, not only on me, but on their local ecosystems.  

By: Marianne Hudson, ACA Executive Director

ACA members have known for years that people from other countries make AMAZING entrepreneurs.  This is one of the main reasons ACA has supported policies like startup visas and the International Entrepreneur Rule to ensure that more of these entrepreneurs from other countries can stay in the US and create innovative and job creating companies.

Now we have a new source of data on international entrepreneurs – Immigrant Founders of the 2017 Fortune 500 – by the Center for American Entrepreneurship (CAE).  The report comes amid the ongoing debate about US immigration policy – and, most immediately, debate regarding the policy known as Deferred Action for Childhood Arrivals (DACA).

By: Marianne Hudson, ACA Executive Director

I’m so grateful for the insights, wisdom and guidance we hear from ACA members.

We are in the midst of a robust strategic planning process that many ACA Board members have put in an unbelievable amount of time into.  I’ll spare you the full process, but a key piece was a survey of members and the extended startup support community.  You told us you value ACA education programs and public policy work, and wanted us to provide even more education, data-driven insights, and guidance regarding smart practices in angel investing. 

It’s a “ta-da” moment. ACA is announcing two new strategic initiatives that provide what you asked for.   

By: Marianne Hudson, ACA Executive Director

The Angel Capital Association joins the National Venture Capital Association, Center for American Entrepreneurship and many others in thanking Congress for dropping a proposed tax on equity compensation of startup employees that would have devastated the way many high growth companies pay their employees.  The proposal was in both House and Senate bills for tax reform.  The experience of watching many organizations form a coalition and explain to House and Senate leaders how the proposal would have damaged an incredibly important part of our economy also showed us how much power we can have in Washington, DC when we work together.

By: Marianne Hudson, ACA Executive Director

On November 2, Congressional Republicans introduced their new tax reform legislation.  It includes many tax cuts and simplifications that are getting considerable media attention.  I am heartened by a focus that is getting much less press – a focus on entrepreneurship and innovation, in recognition of the importance of the formation of new companies on our economic health.  The bill continues some tax policies ACA has fought for and so ACA has provided a message of support for the bill.  Below is a copy of our public statement supporting the bill, H.R. 1.

By: Marianne Hudson, ACA Executive Director

Recently two articles caught my attention for calling attention to the importance of startups to national economies, with one particularly pointing out how key angel investors are.  Both writings point to how startups create jobs and innovations to our economy and they are the kinds of articles that Members of Congress and other policy makers read.  (That helps ACA make progress on Capitol Hill, trust me!)

Below are both articles with some excerpts so you get the general idea.  Check out the full articles too.

By: Ham Lord, Managing Director of Launchpad Venture Group and Co-Founder of Seraf-investor.com

This post originally appeared on Seraf-investor.com

This article is the first in an ongoing series on valuation and capitalization. To learn more about the financial mechanics of early stage investing, download this free eBook today Angel Investing by the Numbers: Valuation, Capitalization, Portfolio Construction and Startup Economics or purchase our books at Amazon.com.

In the sport of Major League Baseball, the greatest hitters are those who get a hit just one out of every three times at bat and a home run 5 or 6 times out of 100 at bats. In the world of startup company investing, the best-known investors are those who invest in the tiny percentage of companies that make it big. Think Facebook, Google or Amazon. If you invest in one of those enormously successful companies you will find your name in the equivalent of the Baseball Hall of Fame… it’s called the Forbes Midas List.  

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