Angel course

Lesson 1 • The Startup Funding Lifecycle

Maps the full capital continuum from pre-seed to IPO. Shows where angel capital enters and exits relative to other funding rounds.

Lesson 2 • Risk and Return Fundamentals

Introduces the power-law return distribution unique to early-stage investing. Sets realistic expectations for loss rates and portfolio outcomes.

Lesson 3 • What Angel Investing Is

Defines angel investing, its historical roots, and its role in early-stage capital. Anchors the chapter by establishing shared vocabulary for all subsequent topics.

Lesson 4 • Angel Investor Profiles and Motivations

Examines the diversity of angel archetypes and their financial and non-financial motivations. Helps students identify their own investor identity.

Lesson 1 • Traction and Early Metrics

Defines the traction signals that validate product-market fit at pre-revenue and early-revenue stages. Teaches students to interpret sparse data with rigor.

Lesson 2 • Building a Deal Flow Pipeline

Identifies the primary channels through which angels discover startups. Establishes a structured intake process to manage volume efficiently.

Lesson 3 • Evaluating the Founding Team

Teaches structured methods for assessing founder quality, the single most predictive factor at early stages. Builds on screening by adding depth to team evaluation.

Lesson 4 • Initial Screening Criteria

Defines the fast filters used to triage hundreds of opportunities into a manageable shortlist. Connects screening discipline to long-term portfolio quality.

Lesson 1 • Unit Economics Deep Dive

Breaks down customer acquisition cost, lifetime value, and payback period for each model type. Connects unit economics to long-term capital efficiency.

Lesson 2 • Business Model Archetypes

Surveys recurring startup business model patterns and their revenue implications. Provides a classification system used throughout financial analysis sections.

Lesson 3 • Reading Startup Financial Statements

Teaches interpretation of income statements, balance sheets, and cash flow statements in early-stage contexts. Highlights how startup financials differ from mature company reports.

Lesson 4 • Capital Efficiency and Funding Needs

Assesses how efficiently a startup converts capital into milestones. Determines whether the current raise size is appropriate for stated goals.

Lesson 1 • Venture Capital and Return-Back Methods

Teaches the VC method of working backward from exit value to justify entry price. Connects valuation to portfolio-level return targets established in Chapter 1.

Lesson 2 • Scorecard and Checklist Methods

Introduces qualitative scoring frameworks that adjust a regional median valuation by weighted factors. Provides a fast, defensible starting point for negotiations.

Lesson 3 • Negotiating and Defending Valuation

Applies all prior frameworks to live negotiation scenarios. Teaches angels to push back on inflated valuations without damaging founder relationships.

Lesson 4 • Convertible Instruments and Valuation Caps

Explains how SAFEs and convertible notes defer valuation while protecting investors. Covers cap, discount, and MFN provisions in practical terms.

Lesson 1 • Technical and Product Diligence

Assesses product maturity, technical debt, and defensibility of the technology stack. Applies to both software and hardware investment targets.

Lesson 2 • Commercial and Customer Diligence

Validates market claims through direct customer interviews and reference calls. Stress-tests the revenue model against real buyer behaviour.

Lesson 3 • Structuring the Diligence Process

Designs a phased diligence workflow that balances depth with speed. Establishes the document request list and stakeholder interview plan.

Lesson 4 • Writing the Diligence Memo

Synthesises all findings into a structured investment memo with a clear recommendation. Teaches concise risk-benefit framing for solo and syndicate decisions.

Lesson 1 • Control and Governance Terms

Covers board composition, protective provisions, and information rights that preserve angel influence post-investment. Balances investor protection with founder autonomy.

Lesson 2 • Closing the Deal

Walks through the closing process from signed term sheet to wired funds. Covers legal documentation, escrow, and post-close obligations.

Lesson 3 • Pro-Rata and Follow-On Rights

Explains the mechanics and strategic value of maintaining ownership percentage in future rounds. Connects follow-on strategy to portfolio construction from Chapter 7.

Lesson 4 • Key Economic Terms

Explains liquidation preferences, participation rights, and anti-dilution provisions in detail. Quantifies how each term affects angel returns at exit.

Lesson 1 • Active Portfolio Monitoring

Establishes a cadence for tracking portfolio company health without micromanaging founders. Teaches early warning detection for distressed companies.

Lesson 2 • Portfolio Theory for Angel Investors

Adapts modern portfolio theory to the illiquid, high-variance nature of angel investing. Establishes why diversification is the primary risk management tool.

Lesson 3 • Follow-On Investment Decisions

Provides a framework for deciding when to double down on winners and when to let losers go. Connects to pro-rata rights covered in Chapter 6.

Lesson 4 • Value-Add Beyond Capital

Defines the non-financial contributions that differentiate great angels from passive check writers. Builds a personal value-add menu aligned with investor strengths.

Lesson 1 • Exit Pathway Overview

Maps the primary exit routes available to angel investors and their typical timelines. Sets realistic expectations for liquidity horizons.

Lesson 2 • Tax Efficiency and Return Optimisation

Covers tax treatment of angel gains and losses using functional concepts applicable across jurisdictions. Maximises after-tax returns through timing and structure.

Lesson 3 • Mergers and Acquisitions Dynamics

Explains how M&A processes unfold and how angel terms affect payout at acquisition. Teaches angels to evaluate deal quality beyond headline price.

Lesson 4 • IPO and Lock-Up Considerations

Covers the IPO process from an early investor's perspective, including lock-up periods and post-IPO selling strategy. Addresses the gap between paper and realised gains.