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Angel Investor

Demystifying private equity

April 15, 2021
Is your goal to own multiple dental practices? There's a whole language associated with it, and a lot to learn. Dr. Chris Salierno provides some terrific first steps.
Chris Salierno, DDS, Chief Editor, Dental Economics

Angel investors, term sheets, up rounds . . . this is the language of venture capital. If you’re an aspiring owner of multiple practices, you would do well to start learning the concepts and speaking the lingo. We definitely didn’t learn this stuff in dental school.

For example, Tend, a startup in urban-based, technology-focused dental practices, recently completed a successful Series C round of investments. If you check out the history of their funding rounds on Crunchbase, you’ll see a case study in how this process is supposed to work for a young and successful company. If your enterprise were ever to seek private equity funding, this is the kind of trajectory you would want.

But if those numbers and terms are foreign to you, then I’d like to introduce you to the resources that helped me.

First, I’m a huge fan of Khan Academy, which you may be familiar with as a free, online educational platform for a variety of topics. Founder Sal Khan has an MBA from Harvard, and his lessons on finance and capital markets are outstanding. Check out this introduction to startup financing, and you’ll start going down the rabbit hole.

Next, when you’re ready to take a deeper dive, then I strongly recommend the book Venture Deals by Brad Feld and Jason Mendelson. Some books on start-ups and investments are too academic, but this one is quite readable while still being comprehensive.

Finally, take a look at Startup Evolution Curve by Donatas Jonikas, PhD. This serves more as a workbook, helping you flesh out your ideas, apply best business practices, and consider how external funding can help scale.

Enjoy the journey!