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An investor will always do his due diligence before he makes an investment in a startup. And when it’s an <keyword id="464532" type="UNKNOWN" weightage="20" keywordseo="Angel-investor">angel investor</keyword>, he has to be doubly sure about his decision. If you are an angel investor and thinking of investing some of your monies in a startup, make sure you read these tips. 
	 
	The core team 
	 
	This criteria becomes all the more important for an angel investor because he will be funding a startup on his own. This should be kept in mind especially if it is a seed funding. Learn more about the core team who have launched the company and then decide. 
	 
	Growth opportunities 
	 
	As an angel investor, you will find ample opportunities to grow along with the company. You can be more than just an investor in the company. If you don’t see that growth opportunity in the startup, maybe you should look at some other options. 
	 
	The market space 
	 
	The next parameter is the sector of investment. Assess the sector in which the startup has been launched. Since you are an angel investor, understand where your money is being invested. 
	 
	Emergency exit 
	 Every investor looks for an <keyword id="1718519" type="UNKNOWN" weightage="20" keywordseo="easy-exit">easy exit</keyword>, if unwarranted circumstances arise. Hence, easy exit is a crucial factor for any angel investor before they zero in on a new venture.

These tips will help you be a
smart angel investor

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div></div></div>FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.<a href="http://www.wsj.com/articles/financial-advisers-dump-bond-proxies-as-rate-hike-looms-1427117105">Bond funds are seeing outflows on rate hike worries</a> (Wall Street Journal)Morningstar says almost $1.2 billion exited bonds funds in February. This represents a 67.3% spike higher from the $717 million of outflows in January, and comes amid growing fears the US Federal Reserve will hike interest rates in the middle of the year. Active and tactical fixed-income investments have seen the brunt of the selling while RIAs have moved more money into passively managed fixed-income investments, like municipal bonds. <a href="http://www.thinkadvisor.com/2015/03/23/merrill-fined-25m-over-unapproved-double-productio?t=wirehouses">Merrill Lynch fined $2.5 million for giving presentations that were not approved by compliance</a> (ThinkAdvisor)Massachusetts has fined Merrill Lynch $2.5 million for giving presentations that were not pre-approved by compliance staff. The presentation was made to 300 financial advisors and covered Optimal Practice Model (OPM) Tools. According to regulators, the presentation "did not include language regarding client suitability or the fiduciary requirements of Merrill Lynch financial advisors."<a href="http://www.bloomberg.com/news/articles/2015-03-23/what-empty-nesters-don-t-know-about-saving-for-retirement">Things to consider when saving for retirement</a> (Bloomberg) Bloomberg says the amount of money Americans have saved for retirement "depends on whether or not parents spend less money and save more when their kids are on their own." A study conducted by the Center for Retirement Research at Boston College (CRR) concluded the spending habits of 52% of retirees may not be sustainable as they progress deeper into retirement. To combat this, empty nesters should increase their savings after their children move out of the house. Doing this reduces the risk to 17%. <a href="http://www.reuters.com/article/2015/03/23/us-column-weston-taxes-idUSKBN0MJ16320150323">Make sure you claim your college tax breaks</a> (Reuters) According to Sallie Mae's survey, "How America Pays for College 2014," only 42% of those surveyed made use of tax breaks designed to ease the burden of college. The survey showed many high income earners simply didn't know they were eligible to receive the break, or that their kids could have used the tax credit. As for the low income end, only 36% received the $1000 refund. According to Reuters, "To qualify, the student must attend college at least half-time, and the credit cannot be claimed for more than four tax years." Reuters also notes, "The credit phases out between modified gross incomes of $80,000 to $90,000 for singles, and $160,000 to $180,000 for married couples filing jointly."<a href="http://www.financial-planning.com/news/ria/schwab-reshapes-digital-market-with-robo-rollout-for-advisors-2692289-1.html?zkPrintable=1&amp;nopagination=1">Charles Schwab unveils robo advisor for RIAs</a> (Financial Planning) Charles Schwab has unveiled its second robo advisor product of the month. The company's Institutional Intelligent Portfolios product is designed for RIAs, and is scheduled for launch in the second quarter. Charles Schwab Advisor Services Executive Vice President Bernie attributed the rise of the robot for the product's conception. "Our success has been built on helping our clients grow and we were worried they would be would be at a competitive disadvantage," he said. RIAs should note portfolios must hold 4% of assets in cash and that anyone firm with less than $100 million in assets under management will be subject to a fee of 10 basis points. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/iphone-headphones-tricks-2015-2">14 things you didn't know your iPhone headphones could do</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="o2OGM3czpWcydnvhjbkDBd6feXPuExiD" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

Bond investors are running for the exits

The new wave of Indian enterprise has taken the country’s young blood by storm. The government has created a vibrant entrepreneurial ecosystem, thanks to start up India, and now anybody can dream of owning a business. However, in recent times, we have seen some start ups had to shut their doors as they strived to find a feasible revenue model or made too many losses to keep themselves afloat. Also some businesses suffered drying up of funding before reaching the break even. At such a juncture, incidents of entrepreneurs getting harassed by investors or vendors for paying dues are reported. Young people are now thinking multiple times whether starting a business would be a clever thing to do. In India, when the ecosystem is still at a nascent stage, it wouldn’t be great if young entrepreneurs back out fearing legal procedures. To make things convenient, Business Insider talked to Manav Raheja , Partner at J. Sagar Associates , a renowned legal firm in India to get an idea of what to do and what not to in legal terms before starting your own business. Legal paperwork at angel stage The start-up company should enter into a term sheet and thereafter an investment agreement / share-subscription and shareholders agreement with the angel investor recording the terms of the investment made by the angel investor. Such documents would generally cover the nature of the instrument being issued to the angel investor (equity, debt or convertible equity), the post investment shareholding of the investor in the start-up company, management and veto rights of the angel investor, anti-dilution protection and exit rights of the angel investor. Pre-cautions to be taken As angel investor enters the start-up company at a very early stage. It is important for the entrepreneur not to give them overarching rights, which would end up causing interference in the day-to-day operations and growth path of the start-up company. This may be a difficult balance to strike as the start-up company is keen to receive investment from the angel investor to grow the business while not parting with too much equity or control. Paying creditors Payment to creditors at the time of shut down is not unique to start-up companies only. This requirement is also to be complied by large companies / businesses about to shut down as well. Start-up companies should try to control their burn rate and remain lean in the initial few years till the business / product is well developed. They should avoid overleverage in the pursuit of growing exponentially. Objective short term goals for business should be planned as against going all out after receiving a round of funding. If a start-up company is heading to shut down, it should chart out a plan on how to pay all creditors before the shutdown process commences. Ideally it is better to start discussions with the creditors beforehand and negotiate discounts from them. An in house law board or should they hire outsourcing a legal firm? In the initial stages, it is better to engage a law firm who is specialised in working with start-ups. Such law firms can / attorneys are familiar with start-up fund raising best practices and can guide the entrepreneur. Hiring a lawyer on a full time basis would be an additional cost to the start-up company. In the initial stages, the focus of the start-up should be to hire only people who can grow the business / product being developed by the start-up. An in-house lawyer will be a cost without any revenue generating capacity / skill sets. What are the major clauses that start up founders need to mention in their agreement with a) Angel Investor b) Series A investment Business plan and direction – that the investor will not have a say in the day to day operation of the business and will only be involved in strategic decisions (affirmative vote items); Board representation – will the angel investor have a representative on the board of the company; Veto / affirmative vote items – key business decisions on which the angel investor will have a blocking / negative control right; Anti-dilution rights – this clause addresses a situation where the angel investor will get diluted in case of a further fund raise by the start-up, where the angel investor does not participate; Pro-rata rights – these are relevant where a new investor comes in with a larger investment and the angel investor may need to drop some of its rights; ROFR – that the investors will be subject to a right of first refusal in case they intend to sell their shares in the start-up company; No sale to competitor – that they cannot sell their shareholding to a competitor of the company, without consent of the promoters; and Exit rights – these clauses address the options and timelines as per which the investor will be able to exit from the start-up company. These could be in the nature of put/call options, tag along or drag along options, sale to third party or initial public offering.

Starting your new business? Make sure you have these legal paperwork and contracts before getting investors onboard

<div class="image-container float_right" style="width:400px"><div class="image"></div>Jacob MullinsJacob Mullins, founder of <keyword id="6475395" type="PERSON" weightage="60" keywordseo="exit">Exit</keyword> Round and Senior Associate at <keyword id="815268" type="COMPANY" weightage="60" keywordseo="Shasta-Ventures">Shasta Ventures</keyword></div>Jacob Mullins is a Senior Associate at Shasta Ventures, a venture capital firm that has invested in <keyword id="6362513" type="ORGANIZATION" weightage="60" keywordseo="Startups">startups</keyword> like Nest and Path.
Lately, he's had a lot of tough conversations with entrepreneurs. <a href="http://www.businessinsider.com/what-down-rounds-do-to-startups-2013-2">Founders are running out of cash</a> because investors have gotten tighter with their money in recent months. Now entrepreneurs are facing the tough realization that their startups probably won't survive.
After hearing numerous <a href="http://www.businessinsider.com/startup-turf-geography-club-shuts-down-2013-2">stories from troubled founders</a> and observing the <a href="http://www.businessinsider.com/42-floors-recruiting-dan-shipper-2012-5">brutal war for talent in Silicon Valley</a>, Mullins saw an opportunity.
He created <a href="http://www.exitround.com">ExitRound</a>, a place where struggling startups and large corporations can meet each other to discuss potential acquisitions. It's the opposite of AngelList, a database where startup founders can meet potential investors. ExitRound is where startups can quietly raise the white flag and explore exit options.
It has the potential to be a powerful tool for entrepreneurs and help less connected founders land softly at companies where they don't currently have contacts.
When startups get acquired by companies like Google or Yahoo, it's usually because the founder and the company <a href="http://www.businessinsider.com/marissa-mayer-makes-her-first-acquisition-and-its-one-of-her-former-colleagues-2012-10">were already in touch</a>. But if a founder doesn't have many contacts, its exit options are limited. On ExitRound, the playing field can be leveled.
Founders have to apply to create an ExitRound profile and all listings are completely anonymous. Those who come highly recommended, are financially backed by VCs, or have gone through notable accelerator programs such as Y Combinator are favored.
Once they're granted access to ExitRound, founders can create anonymous profiles describing their executive teams and their business models.
Corporations can peruse the information for potential fits for their companies. If the corporation sees a startup it likes, it can message the founder, much like a LinkedIn InMail message.
The founder can either ignore the message or respond, which opens up the discussion.
Like a typical recruiter, Mullins will charge a fee for introducing the two if an <keyword id="30334" type="ORGANIZATION" weightage="60" keywordseo="acquisition">acquisition</keyword> occurs over ExitRound. The cost will be $10-20,000 per person acqui-hired.
Mullins will remain employed by Shasta Ventures while he works on ExitRound, although the two companies aren't connected.
Mullins wants to avoid taking any venture capital for his startup, because he wouldn't want to feel in any way like he had to push entrepreneurs to sell their companies.
But for the many startups who will inevitably need to figure out next steps, Mullins will be there to help them softly land.

So Many Startups Are Failing, A VC Created A Startup To Help Them Die A Better Death

<div class="KonaFilter image-container display-table"><div><div class="image"></div></div></div>
Bill Gross is <a href="http://www.businessinsider.com/bill-gross-leaves-pimco-2014-9">leaving PIMCO for Janus Capital</a>.
Gross is leaving the firm after a period of turmoil at PIMCO and will take over the Janus Unconstrained Bond Fund, which currently has about $13 million in assets under management. At PIMCO, Gross managed the Total Return Fund, which has more than $221 billion in assets under management.
On Friday following the news, several of PIMCO's closed-end funds were taking it on the chin. US-listed shares of Allianz, which owns PIMCO, <a href="http://www.businessinsider.com/allianz-shares-fall-on-bill-gross-news-2014-9">were also down more than 6.5% on Friday</a>. 
A closed-end bond fund has a few traits that make it vulnerable in a moment like this. For one, closed-end funds can't accept new money after they begin trading on an exchange.
Also, they trade on an exchange. Unlike a traditional open-end mutual fund, a closed-end fund is listed on a stock exchange and trades like a stock, trading usually either at a discount or premium to its net asset value. 
The drop in PIMCO's closed-end funds also comes after a report from AllianceBernstein said it expects assets under management at PIMCO to fall 10%-30% in the wake of Gross' departure. 
Here is the ugly action in a few of PIMCO's closed-end funds as investors rush for the exits.
Here's the PIMCO High Income Fund, down more than 8.5% in trading on Friday.
<div class="KonaFilter image-container display-table"><div><div class="image"></div></div></div>
The PIMCO Income Opportunity Fund is down 2%. 
<div class="KonaFilter image-container display-table"><div><div class="image"></div></div></div>
The PIMCO Dynamic Income Fund is down about 2.5%. 
<div class="KonaFilter image-container display-table"><div><div class="image"></div></div></div>
And the PIMCO Dynamic Credit Income Fund is down 1.8%. 
<div class="KonaFilter image-container display-table"><div><div class="image"></div></div></div>
Tough day for PIMCO.

This Is What It Looks Like When PIMCO Investors Start Rushing For The Exits

<ul><li>In an exclusive interview with Business Insider, Pankaj Makkar, Managing Director, <keyword id="1982364" type="PERSON" weightage="20" keywordseo="Bertelsmann-India-Investments">Bertelsmann India Investments</keyword> said that <keyword id="864887" type="COMPANY" weightage="20" keywordseo="Pepperfry">Pepperfry</keyword> is on the right path for fast growth.</li><li>Bertelsmann India Investments has been an investor in Pepperfry since 2014. </li><li>Pepperfry which had last raised funding in March 2018, is reportedly looking to raise another $100 million. </li></ul>Eight-year old online retailer of furniture and home products, Pepperfry, has been one of the market leaders in its segment in India. And its early investors are backing the startup for faster growth and scale. In an exclusive interview with Business Insider, Pankaj Makkar, Managing Director, Bertelsmann India Investments, who invested in Pepperfry in 2014, said that they are in no hurry to exit from the startup as it’s doing really well. Pepperfry has been scaling up its businesses and is also looking at achieving its $1 billion Gross Merchandise Value (GMV) <a href="https://www.moneycontrol.com/news/business/companies/pepperfry-targets-gross-merchandise-value-of-1-billion-by-2021-3754081.html">target</a> by 2021. With over 6 million customers, Pepperfry has 39 offline studios across 22 cities in India and is launching more. “Pepperfry has always been ahead of the curve. Its omni-channel strategy of scaling up operations across metros and tier I and II cities, has worked exceptionally well. We are confident that with the right scale and their strong unit economics, Pepperfry will continue to lead the furniture <keyword id="436047" type="COMPANY" weightage="20" keywordseo="Ecommerce">eCommerce</keyword> space in India,” said Makkar. The propelling factor in Pepperfry’s journey would be there right selection to be in the e-commerce category unlike in horizontal e-commerce (businesses that sell products from various categories). “In e-commerce, if you look at horizontal businesses, they play on very small margins but if you look at categories like furniture, they play on very high margins,” said Makkar. Founded by Ambareesh Murty and Ashish Shah, Pepperfry had last raised a funding of $38.5 million in March 2018. According to reports, the company is also looking at <a href="https://tech.economictimes.indiatimes.com/news/internet/existing-investors-may-invest-100m-in-pepperfry/67519933">raising another</a> $100 million this year. While its valuation remains undisclosed, it has often been <a href="https://inc42.com/datalab/30-indian-soonicorns-that-have-the-potential-to-be-unicorns-by-2020-part-2/">listed</a> as a soonicorn (soon to be unicorn or valued at $1 billion). See Also: <a href="https://www.businessinsider.in/after-amazon-pepperfry-launches-wedding-gift-registry-on-its-platform/articleshow/68171208.cms">Indian e-tailers want you to choose the presents that your friends will pay for</a> <a href="https://www.businessinsider.in/heres-why-pepperfry-is-taking-the-omni-channel-route-before-ikea-enters-the-indian-market/articleshow/59730212.cms">Here’s why Pepperfry is taking the Omni-channel route before IKEA enters the Indian market</a>

An investor in Pepperfry, India’s largest online furniture retailer, is in no rush to exit

<ul class="summary-list"><li>The SEC will likely look into Ryan Cohen's exit of Bed Bath &amp; Beyond, former chairman Jay Clayton said.</li><li>Clayton noted extreme volatility following Cohen's sell off of his shares.</li></ul>The Securities and Exchange Commission will likely look into Ryan Cohen's exit from Bed Bath &amp; Beyond this week, former SEC Chairman Jay Clayton said. Cohen, who is known for ambitious stakes in meme stocks, sold his holdings in Bed Bath &amp; Beyond this week for a <a href="https://markets.businessinsider.com/news/stocks/bed-bath-beyond-market-news-meme-stock-ryan-cohen-sells-2022-8">profit of $68 million</a>. The star investor announced in March that his venture capital firm had taken a <a href="https://www.sec.gov/Archives/edgar/data/0000886158/000119380522000426/sc13d13351002_03072022.htm">nearly 10% stake</a> in the struggling home-goods retailer, sending the stock higher. Shares tumbled 40% Friday and are now less than half of their peak.In an <a href="https://www.youtube.com/watch?v=O1DM-DQGkAg">interview to CNBC</a>, Clayton said the regulatory agency was likely to look into Cohen's exit of Bed Bath &amp; Beyond, given the extreme stock volatility surrounding his exit, as well as the fact that he was an activist investor, meaning it's possible he had information that retail investors didn't have. "I'm sure they'll look into it," Clayton said <a href="https://www.youtube.com/watch?v=O1DM-DQGkAg"></a>. "How they look into it — that's going to be up to them. But I'm sure that they will look at this, both around the trading and around whether there was market activity with material, non-public information."He added though that activist investors are generally aware of the rules.But Whitney Tillson, a former hedge fund manager, called Cohen's exit a "total disgrace" and claimed in a <a href="https://empirefinancialresearch.com/articles/i-filed-a-complaint-with-the-sec-about-ryan-cohens-likely-pump-and-dump-of-bbby-20-year-old-student-makes-110-million-on-bbby-doug-kass-bear-market-case">blog post</a> that he already asked the SEC to look into a potential investigation for manipulation of a security. Cohen's exit also came shortly after Bed Bath &amp; Beyond, which reported a $224 million loss in the second quarter, said it would work with Kirkland &amp; Ellis for debt restructuring, according to a <a href="https://www.bloomberg.com/news/articles/2022-08-18/bed-bath-beyond-is-said-to-tap-kirkland-ellis-for-debt-help#xj4y7vzkg">report from Bloomberg</a>.

The SEC will likely look into Ryan Cohen's exit from Bed Bath & Beyond stock, says former chair Jay Clayton

<ul class="summary-list"><li>Foreign investors exiting Russia must donate at least 10% of asset sale proceeds to the state.</li><li>The new rule applies to investors from "unfriendly countries" that imposed sanctions against Russia.</li></ul>More than a year into the Ukraine war, the Kremlin is still thinking of ways to penalize foreign companies exiting the country — and it is now making the departure more expensive.Investors who are selling their businesses and are from <a href="https://www.businessinsider.com/russia-publishes-list-unfriendly-countries-Ukraine-war-condemnation-2022-3">"unfriendly countries"</a> — those that have imposed sanctions against Russia over its invasion of Ukraine — must donate at least 10% of the sale proceeds to the Russian budget, according to a <a href="https://minfin.gov.ru/ru/document?id_4=301633-vypiska_iz_protokola_zasedaniya_podkomissii_pravitelstvennoi_komissii_po_kontrolyu_za_osushchestvleniem_inostrannykh_investitsii_v_rossiiskoi_federatsii_ot_2_marta_2023_goda__1434" target="_blank" rel="noopener">document posted on Monday</a> by the country's finance ministry.The new ruling states that such companies have "an obligation to make a voluntary cash contribution to the federal budget" that amounts to at least 10% of what they receive from the sale, according to a <a href="https://www.reuters.com/world/russia-forces-foreign-firms-pay-into-budget-they-leave-2023-03-28/" target="_blank" rel="noopener">Reuters</a> translation.This donation is on top of a <a href="https://minfin.gov.ru/ru/document?id_4=301169-vypiska_iz_protokola_zasedaniya_podkomissii_pravitelstvennoi_komissii_po_kontrolyu_za_osushchestvleniem_inostrannykh_investitsii_v_rossiiskoi_federatsii_ot_22_dekabrya_2022_goda__1181" target="_blank" rel="noopener">previously announced</a> <a href="https://www.reuters.com/business/russia-outlines-plan-unfriendly-investors-sell-up-half-price-2022-12-30/" target="_blank" rel="noopener">50% cut</a> on the sale of their assets, which has to be borne by these investors.Russia witnessed an <a href="https://www.businessinsider.com/list-all-the-companies-pulling-out-of-russia-ukraine-war-2022-3">exodus of companies</a> after it invaded Ukraine, but some have remained — either voluntarily or because of challenges in leaving the Russian market.While over 1,000 companies quickly announced that they were voluntarily cutting back on operations in Russia just two months after the Ukraine war started in February 2022, just 520 companies have managed to make a clean break so far, <a href="https://som.yale.edu/story/2022/over-1000-companies-have-curtailed-operations-russia-some-remain" target="_blank" rel="noopener">according to an ongoing study</a> led by Jeffrey Sonnenfeld, a professor at the Yale School of Management.About 550 foreign companies are still actively operating in the country, according to <a href="https://som.yale.edu/story/2022/over-1000-companies-have-curtailed-operations-russia-some-remain" target="_blank" rel="noopener">Yale's list</a>. They include firms from the US, Germany, France, and Italy, among others.<h2>It is difficult for multinationals to pack up and leave Russia</h2>It's challenging for multinationals to simply pack up and leave Russia, according to a <a href="https://blogs.lse.ac.uk/businessreview/2023/03/28/why-its-so-difficult-for-companies-to-leave-russia/" target="_blank" rel="noopener">Wednesday blog post</a> from Saul Estrin, a professor at the London School of Economics, and Klaus E. Meyer, a professor at Ivey Business School.Chief among the list of challenges is that foreign business subsidiaries need to comply with several Russian policies."The subsidiary would typically have many contractual and legal obligations from which it cannot simply walk away," wrote Estrin and Meyer. "A sudden withdrawal is likely to result in legal action by business partners, or by the authorities."Even so, a few high-profile companies have left Russia — such as <a href="https://www.businessinsider.com/mcdonalds-quits-russia-30-years-ukraine-war-putin-2022-5" target="_blank" rel="noopener">McDonald's</a>, <a href="https://www.businessinsider.com/starbucks-is-leaving-russia-after-mcdonalds-2022-5" target="_blank" rel="noopener">Starbucks</a>, and <a href="https://www.businessinsider.com/goldman-sachs-pulls-out-of-russia-ukraine-invasion-2022-3" target="_blank" rel="noopener">Goldman Sachs</a>.While the Russian <a href="https://www.businessinsider.com/rebranded-starbucks-reopening-russia-stars-coffee-2022-8">Starbucks</a> franchise was <a href="https://www.businessinsider.com/rebranded-starbucks-reopening-russia-stars-coffee-2022-8">sold to a group</a> comprising a businessman, a rapper, and a Russian company, assets from <a href="https://www.businessinsider.com/russia-rebranded-mcdonalds-photos-how-it-differs-2022-6#and-replaced-with-the-new-logo-for-vkusno-and-tochka-or-tasty-and-thats-it-5">McDonald's</a> and Goldman Sachs were sold to former employees.These options are not available to every company — especially since there would be fewer potential buyers because of sweeping sanctions against Russia, according to Estrin and Meyer.Over 2,000 companies are seeking approval to exit the Russian market, the <a href="https://www.ft.com/content/77368014-1397-4a08-901d-1f996e66d627" target="_blank" rel="noopener">Financial Times</a> reported on Tuesday, citing a person involved in an exit negotiation. But the authority handling the applications meets only three times monthly and considers up to seven applications each time, thus lengthening the exit process, per the FT.The Russian finance ministry did not immediately respond to Insider's request for comment.

Russia is forcing Western companies exiting its market to make a donation to the country &mdash; and it's making it harder for them to leave

<ul class="summary-list"><li>The founder of Exit 7C pled guilty to three counts of wire fraud on Wednesday.</li><li>Blessing Egbon admitted he used <keyword id="11910420" type="UNKNOWN" weightage="60" keywordseo="investors" source="Orion">investors</keyword>' money for "personal purposes."</li></ul>The founder of Exit 7C, a Milwaukee-based <keyword id="12233232" type="UNKNOWN" weightage="60" keywordseo="fuel" source="Orion">fuel</keyword> company, pled guilty on Wednesday to defrauding investors out of over $6.2 million.Blessing Egbon, 35, admitted to three counts of wire fraud, according to a plea agreement <a href="https://www.justice.gov/usao-edwi/pr/federal-criminal-charges-filed-against-ceo-exit-7c-inc">filed</a> in the US District Court for the Eastern District of Wisconsin and first <a href="https://www.freightwaves.com/news/fuel-company-owner-pleads-guilty-to-bilking-nearly-63m-from-investors?utm_source=sfmc&amp;utm_medium=email&amp;utm_campaign=FW_Daily_2_7_22&amp;utm_term=Fuel+company+owner+pleads+guilty+to+bilking+nearly+%246.3M+from+investors&amp;utm_id=112976&amp;sfmc_id=63552904">reported by Freight Waves. </a>The Exit 7C founder was accused of giving investors false revenue and profit numbers, as well as using nearly a third of investor's funds to charter <keyword id="12128007" type="UNKNOWN" weightage="60" keywordseo="private-jets" source="Orion">private jets</keyword>, rent villas, visit nightclubs, and make "payments" to himself.The fuel company, which was founded in 2015 as CoOp Fuels, provided bulk fuel to gas stations throughout the US, offered maintenance to service vehicle fleets, as well as created a digital fuel card that allowed users to buy gas via a mobile app. The company dissolved in 2020, just a few months after Exit 7C's board of directors investigated Egbon and asked him to resign as CEO, according to the court documents.Federal prosecutors alleged that between 2018 and 2019 Egbon claimed Exit 7C's sales revenue was over $91 million, when it actually averaged $348,000, according to the court document United States of America V. Blessing Egbon. In August, the US Securities and Exchange Commission <a href="https://www.justice.gov/usao-edwi/pr/federal-criminal-charges-filed-against-ceo-exit-7c-inc">filed</a> a separate civil lawsuit against Egbon. The lawsuit alleges that Egbon forged bank statements, emailed current and potential investors monthly newsletters that contained "false information regarding Exit 7C's finances and growth" and gave presentations to investment firm with "fictitious" financial information from 2018 to 2020. The suit said Egbon used much of investor's funds to "subsidize his own lifestyle and personal expenses," through chartering a <keyword id="12324783" type="UNKNOWN" weightage="60" keywordseo="private-jet" source="Orion">private jet</keyword> to fly to a luxury villa he had rented in Arizona, as well as using the funds to buy "large amounts of alcohol" at the onset of the pandemic. The SEC suit says Egbon spent over $530,000 on visits to "luxury nightclubs," over $269,900 on chartering private jets, and $62,500 on renting villas in addition to spending "hundreds of thousands of dollars on day-to-day living expenses."A jury trial to decide the SEC lawsuit scheduled for August.Egbon and his attorney, Michelle Jacobs, did not respond to a request for comment from Insider. Subsequent to the plea agreement with the state, Egbon faces a maximum penalty of 20 years in prison, as well as a $250,000 fine for each of the three charges. He has also agreed to pay restitution to at least 11 former investors.

A fuel company founder pled guilty to stealing more than $6.2 million from investors to charter private jets and visit nightclubs

<div class="KonaFilter image-container display-table"><div><div class="image on-image">REUTERS/Hannibal HanschkeA Tesla car 'Model S' sits in a dealership in Berlin, Germany, November 18, 2015.</div></div></div><ul><li>More than 5,000 investors on Robinhood ditched <a href="http://markets.businessinsider.com/stocks/tsla-stock">Tesla</a> this week. </li><li>The selloff mirrors a decline in the stock's price in recent months.</li><li><a href="http://markets.businessinsider.com/stocks/tsla-stock">Tesla</a> is up 10% this week following the company's annual meeting. </li></ul>Until this week, <a href="http://markets.businessinsider.com/stocks/tsla-stock">Tesla'</a>s stock had hit a rough patch.Last week, after steady declines for most of the year, millennial investors began exiting their positions in the stock.Data from the stock-trading app Robinhood - whose usership skews markedly younger than traditional brokerages - show Tesla was sold more than any other stock on the app over the past week, with 5,087 investors exiting their positions. That's more than any other company on the app's most held list, according to Business Insider's analysis of the data. This week, however, the stock has reversed course and risen more than 10% following the company's annual meeting in California on Tuesday. CEO Elon Musk told investors that <a href="http://www.businessinsider.com/tesla-stock-price-elon-musk-annual-meeting-model-3-update-2018-6">the Model 3 was likely to hit its production targets</a>, something the company has routinely missed, by the end of the month. He also announced a slew of other product updates.Still, Wall Street is <a href="http://www.businessinsider.com/tesla-stock-price-wall-street-is-beginning-to-worry-the-company-might-go-bankrupt-2018-5">growing increasingly worried that Tesla may need a cash infusion</a> in order to stay alive. That's in direct conflict with Musk's claim that the company will soon be profitable. Tesla is currently the 13th most popular stock on the app, down one position from last week, with 82,391 investors holding shares.<div class="KonaFilter image-container display-table"><div><div class="image on-image"><a href="http://markets.businessinsider.com/stocks/tsla-stock"></a><a href="http://markets.businessinsider.com/stocks/tsla-stock">Markets Insider</a></div></div></div> <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/what-humans-look-like-on-mars-2018-5">What humans will look like on Mars</a></h3> <div> </div> </div>

Millennials are ditching Tesla shares faster than any other company

Raising funds for a startup isn’t a cake walk. While you may have prepared the best pitch for your business, it may not be suffice to impress your future <keyword id="6359051" type="COMPANY" weightage="20" keywordseo="investors">investors</keyword>. Sheetal Bahl, co-founder, CEO cum managing director of growX Ventures, a Delhi-based early stage <keyword id="6355120" type="ORGANIZATION" weightage="20" keywordseo="investment">investment</keyword> firm, tells BI India the four most basic parameters that any investor looks for before funding a start-up. 
	 
	The A team 
	 
	No, we aren’t talking about the Hollywood action-comedy flick. We literally mean that the first thing investors look at before deciding to part with the monies is the core team of the <a href="http://www.businessinsider.in/Heres-why-your-company-should-offer-work-from-home-optionto-you/articleshow/50283591.cms">company</a>. How good is the team and how well do they know the business they are venturing into is critical parameter for investing in a startup. 
	 
	Vision 
	 
	No one likes a company that does not have clarity in vision. Before <a href="http://www.businessinsider.in/Still-sitting-on-a-fence-to-buy-your-dream-house-2016-may-be-a-good-year-to-do-that/articleshow/50380104.cms">investing</a>, investors like to understand the future course of action of a startup. Where does the company see itself a year down the line? How does the management want the company to shape up? 
	 
	Space 
	 
	The next parameter is the sector of investment. So basically, investors assess the <a href="http://www.businessinsider.in/Its-gonna-be-a-happy-new-year-Ecommerce-players-set-to-rake-in-the-moolah-in-2016/articleshow/50483052.cms">sector</a> in which the startup has been launched. For instance, GrowX Ventures received nearly 50 pitches from <keyword id="6362513" type="ORGANIZATION" weightage="20" keywordseo="Startups">startups</keyword> in the on-demand laundry space, however, refrained from investing any of the startups in this space because of the sudden boom in the sector. “We are interested in this segment but we are waiting for the right time. If we feel the time is right, then we will probably invest in this category,” said Bahl. 
	 
	Emergency exit 
	 
	Every investor looks for an easy exit, if unwarranted circumstances arise. Hence, easy exit is a crucial factor for any investor before they zero in on a new venture.

These pointers will help you raise funds for your startups

<ul class="summary-list"><li>Insider's <a href="https://www.businessinsider.com/100-best-early-stage-seed-vc-investors-startups-2023-5">Seed 100</a> and <a href="https://www.businessinsider.com/30-best-women-early-stage-seed-vc-investors-startups-2023-5">Seed 30</a> lists are created based on data from Tribe Capital.</li><li>Tribe began with data on over 1,600 investors, analyzing 25 attributes of success, such as exits.</li></ul>The <a href="https://www.businessinsider.com/100-best-early-stage-seed-vc-investors-startups-2023-5">Seed 100</a> and <a href="https://www.businessinsider.com/30-best-women-early-stage-seed-vc-investors-startups-2023-5">Seed 30</a> lists of the best seed investors of 2023 are derived from a statistical analysis of investor track records. This analysis is adapted from the models Tribe Capital uses internally to identify the most promising seed investors for partnership. The point is to identify investors with extraordinary skill and a high likelihood of continued success. To be named to the list, seed investors must:<ol><li>Perform well with investments, including successful initial public offerings or acquisitions (exits meaningfully above "liquidation preference," aka ones that demonstrated increased company value, rather than simple capital raises).</li><li>Show intermediate signs of success, with seed investments that consistently receive material sums of follow-on investment.</li><li>Be active in the ecosystem, with moderate to high levels of seed-investing activity over the previous two years.</li></ol>Our methodology starts with analyzing each investor's performance in 25 areas using Crunchbase and PitchBook data. Since our goal is to predict accomplishments, rather than to focus solely on achievements, we consider only active investors with a minimum of five investments between 2008 and 2023. Our list includes solo venture capitalists and angel investors worldwide, assessed based on their investments in US companies.While each criterion carries equal weight, exits (IPOs or acquisitions) have the most influence in differentiating investors. Given that seed investments typically take seven to 10 years to exit, our analysis covers an extended time frame.This year, we updated the model to better approximate the rate at which investments were exiting. We also reduced the penalty for lower investment counts — given the current, slower dealmaking environment compared with earlier years. This also allowed more emerging managers to enter the scope. To earn a spot, at any ranking, on this list is an achievement. Our candidate pool began with over 1,600 investors, a 15% increase from last year's Seed 100 list. The final ranking included 45 new investors, 33 who improved their rank, and 22 who've been on the list more than once.<h2>Women and the Seed 100</h2>That said, we recognize that many great investors aren't on these lists. Because the point of investing is to realize returns, our model looks at both funding activity and exits. And because it typically takes years before a seed investment shows signs of success, or matures to a prominent exit, it takes years to gauge the quality of an investor's track record. Now add in that venture has a long history of being a white-glove industry, with dealmaking very dependent on networks — aka whom you know — and has historically largely overlooked women. That's starting to change and is one of the problems our data-driven approach to investing is designed to solve. That's why, in addition to the Seed 100, using the same methodology, we have crafted the Seed 30 of the best women seed investors.Still, by relying on historical analysis in our model, especially results, our list reflects the difficulties women face. As more women grow their venture careers and sign more deals, and those deals mature to the point where our analysis can measure them, more women will be named among the Seed 100 list ranks. In just the three years we've been doing the Seed 100 project, we've seen our ability to measure the success of more women grow significantly. In our previous two years, the list of women investors we could, with high confidence, name as the best was capped at 25. This year, with hundreds of women in the 1,600 investors we analyzed, we had enough data to grow that list to 30.<h2>The fundraising environment</h2>We also want to note that the 2023 list comes at a time when the venture-capital industry is operating very differently than in years prior. Tribe Capital created what we call a "Weather Report" to gauge capital supply and demand so we can plan for the future. We're in a fundraising desert, and our indicators show that we're only about one-third of the way through this dry patch, with an estimated 18 to 24 months remaining. Interestingly, though, seed investing has proved largely acyclic. Seed-stage companies are designed to operate leanly, as many are often generating little to no revenue while they build their first products and work on their sales and business-model strategies. Harder-hit are the later-stage companies whose strategies are influenced by available capital. (For more on venture macro, see our research "<a href="https://tribecap.co/crossing-the-desert/" target="_blank" rel="noopener">Crossing the Desert</a>" and "<a href="https://tribecap.co/a-record-shortage-of-venture-capital/" target="_blank" rel="noopener">A Record Shortage of Venture Capital</a>.")Artificial intelligence is another area of influence, particularly the potential of large language models, such as the kind used to create ChatGPT. Many seed-stage companies are reorienting their product strategies around LLMs, using them to augment engineers and workflows, or as technical infrastructure to scale products. We predict that time to market for products will shrink and more value will accrue at the earliest stages of companies than before. As a result, the opportunities for seed investing, and the investors themselves, will grow in volume and diversity.Jake Ellowitz is a partner at Tribe Capital and the data scientist who pioneered Tribe's mathematical models for the startup and venture-capital industries.Also read: <a href="https://www.businessinsider.com/best-seed-early-stage-investors-of-2023-5">Everything you need to know about the best early-stage investors named in the Seed 100 and Seed 30 lists</a>

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