Angels and Private Companies

Angel Investors live dangerously. They speculate on the success of startup private companies. There are a few winning Angels and far more losers. Too many Angels walk their high wire, without a net. They fail to do adequate Due Diligence and never consider safeguards that would limit their losses in an unwise private company speculation.

Anyone who invests in anything based upon a phone call is asking to lose his or her money. Anyone who doesn’t request an investment package that explains the offer in detail and offers proof of the key points in the investment proposal will almost always lose their money. The downfall of too many Angel Investors is their willingness to accept the written investment proposal as factual. The Truth is that the entrepreneur’s claims must be investigated. If the investor wants to be a winning Angel, he or she must be certain that the entrepreneur has factual data and the investment package is a logical and consistent presentation of those facts. The facts must include risks and the private company’s business plan's proposed resolution of those risks.

Angel Investors shouldn’t lose all of their money in a bad speculative investment. In fact, when the business reality departs from the business plan, the balance of the risk capital shouldn’t be expended without the Angel’s written consent. Putting these types of safeguard into any contract protects the investor from total loss.

Over twenty years ago, Beowulf Investments evolved from William Cate’s evaluation of investment proposals for clients. The GVIC Charter
Members were recruited from Accredited Investors who have learned to rely on William Cate for expert evaluations of private company investment proposals.

When you are about to risk tens of thousands of dollars in a private startup company, it’s wise to have Mr. Cate evaluate the investment package. If Mr. Cate can’t find a serious problem with the package, he won’t charge for his review of it.

Mr. Cate can suggest safeguard tactics that will reduce the Angel Investors’ capital risk. Investors can’t lose. An ounce of prevention can ensure the Angel Investors don’t lose all of their risk capital in the venture.

GVIC members qualify for a twenty-percent discount on any investment package evaluation. If you are an Angel Investor having Mr. Cate evaluate several private company investment proposals a year, the GVIC 20% discount will more than offset your membership dues.

Contact William Cate, if you want him to evaluate a startup investment package for you.