Why I stopped angel investing after 15 years (and what I'm doing instead)

Re:Why I stopped angel investing after 15 years (and what I'... by aabaker99 on Saturday May 03, 2025 @12:57PM (#43880381)

> Four others that raised money but with painful recapitalizations that effectively wiped out early shareholders

Does someone have a recommendation on reading that goes deeper on this point? What enables later investors to do this? What can early investors do to protect their investment?

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Re:Why I stopped angel investing after 15 years (and what I'... by Centigonal on Saturday May 03, 2025 @12:59PM (#43880407)

There are a few different ways this can happen. It has to do with seniority of liquidation preferences -- basically, if you recap or you exit for less than your highest valuation, who gets paid first? This blog post is a pretty great summary of what can happen: https://heidiroizen.tumblr.com/post/118473647305/how-to-buil...

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Re:Why I stopped angel investing after 15 years (and what I'... by robocat on Monday May 05, 2025 @06:26AM (#43893480)

Read the other article in the series that has more depth on this:

https://www.halletecco.com/blog/angel-investing-part-iii#:~:...

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