$5 million More For 5Min, Following A Painful Angel Round

Rumor has it that Israeli video startup 5Min, which has user-uploaded “how to” videos, has raised another $5 million in cash, from Spark Capital.

We covered the startup recently – think YouTube with special features like slow motion to make the videos more useful. Our original profile is here, and our coverage of competitors is here.

Ouch! How Not To Do An Angel Round

The company previously raised $300,000 in angel funding. For those entrepreneurs who are curious about the economics of angel rounds, the details around 5min are interesting. In their case, it was ugly. An Israeli (print) magazine called Globes recently got their hands on the capitalization table of 5min and published the details. The angels ended up with nearly half the company for that $300k, leaving the three founders (the first three on the list) and all other employees to split the rest.

It’s rare that this kind of information about a company is published publicly, but it shows how angels can squeeze a company if they have the negotiating leverage.