A reflection on “Winning Angels: The 7 Fundamentals of early stage investing” by: David Amis and Howard Stevenson
What did I just read? This section has been the most confusing to me so far. I hope that I will not have to fully grasp it in order to understand the remainder of the book.
There were two things that made this difficult for me to understand, they were talking about the stock market (shares) and there were a lot of terms that are not in my business vocabulary…YET.
What I was able to understand is that there are three fundamental structures for business terms. The structures may have an exit impact, relationship impact, downside protection, upside protection, entrepreneur protection, worst case scenario, and notes and suggestions.
I am tempted to end my reflection there, but I am going to talk through this. As I was reading this section, my main thought was: if this doesn’t make sense to you, hire a lawyer.
The upside to having an attorney on your side during the structuring phase (as well as negotiations) is that a component and seasoned attorney has he resident knowledge of hundreds of deals related to your interest. They will be able to provide you with sound advice that will protect your interest in the long run.
What I also took away from this reading is that some investing angels believe structure matters and others don’t. In general, I thrive in situations where there is structure. There is a basic understanding of what all parties desire. No grey areas.
My last thought. I would love to see an updated Amazon.com’s structure, especially in 2020 post pandemic since they are DOMINATING the business world. On thing that I know for sure, whomever trusted Jeffrey Preston Bezos in 1994 is living a very happy life. Whomever did not accept or trust his structure is very, very sad right now!