Semir Ajsic
The Master of Entrepreneurship degree
ENT(640) – ENTREPRENURIAL FEASIBILITY ANALYSIS
Western Carolina University
SME Interview – Angel Investing
Interview with Shaun Ahmed, President at 25 Capital Partners.
Short Intro:
Good afternoon, today I had a pleasure of interviewing Mr. Shaun Ahmed, the President of 25 Capital Partners. Shaun holds a B.A in Economics from John Hopkins University and is serving 25 Capital’s Board since 2009. Shaun is responsible for 25 Capital’s investment and asset management activities. He is also an angel investor.
Mr. Ahmed, thank you for taking time out of your busy schedule to interview with me today. I greatly appreciate your willingness to share your journey with us as we go through some questions regarding your journey as an angel investor and venture capitalist.
- How did you get started with Angel Investing?
I started in distressed asset investing. As I got more experience I wanted to try out other types of investments.
- How many deals have you done before you found a winner?
I actually had success in my first deal. It wasn’t wildly profitable but it was a decent return.
Semir: That is quite impressing. As we have seen throughout this course, in accordance to the “The Winning Angels” interviews, not so many angel investors were successful the first time around. It could also be that they defined “a winner” in a different way; perhaps, they were expecting larger returns before they defined the deal as a winner.
- Is structure essential for you or are you okay with common or preferred stock options?
Every deal is different and every structure is different. It is important to structure the deal the right way.
Semir: That makes a lot of sense. I believe that structure is very important for every deal. If the common stock is the only option on the table, the pool of investors may be smaller, but not impossible to strike an interest amongst other investors.
- From your experience what terms are most common amongst new entrepreneurs?
The key is to align interests. Every investment is different and every entrepreneur is different and so the key becomes to create an alignment of interest where everyone is winning and losing together.
Semir: I could not agree more. It is important to find the balance. The investors should not be the only ones taking risk; it should be mutual. I don’t agree with the notion that some angels try to take advantage of the inexperienced entrepreneurs and try to get the terms that work mainly in their favor.
- Do you negotiate with the entrepreneurs before investing? During the seeding round? In additional rounds?
Most of the time yes. I’m currently looking at a deal where the entrepreneur is not negotiating and am considering if I still want to participate.
Semir: I am firm believer in negotiation being an important aspect of any business transaction. If someone is not willing to negotiate, especially in the early stages, it could potentially ruin their chances of getting their product to the market, or at least delay it. It is a turn-off for many investors. Some angels, however, may still be interested in proceeding and taking a gamble.
- What advice do you have for new entrepreneurs in terms of raising capital?
Have a strong business plan. Make sure you have a structure where the interests are aligned. Investors want the entrepreneurs to do well but not at our expense.
- Any final thoughts?
Good investors can be partners for entrepreneurs in more ways than one.
Semir: That is a great advice. As an aspiring entrepreneur with potential business ideas I will certainly keep that in mind and seek your expertise as I formulate the business plan and finish up the initial steps.
Closing statement:
Mr. Ahmed, I thank you again for your time and for sharing your thoughts and advices with me and the audience during this interview. I look forward to working with you on a potential idea soon. It was a pleasure conducting this interview and conversing with you. I appreciate your kindness in accommodating this interview, please let me know if I can ever return a favor in helping you in some way!
