Startup Professionals Musings

NOVEMBER 25, 2020

With the advent and growth of crowdfunding over the past few years, many entrepreneurs have predicted the demise of those demanding angel investment groups and venture capital organizations. I would summarize the qualms and feedback from professional investors as the following: Crowdfunding platform costs trickle down to angel groups.

Equity 411

Equity Angel Groups Accredited Investor Due Diligence 411

Startup Professionals Musings

FEBRUARY 13, 2011

Angel Capital Association (ACA). The ACA membership includes more than 150 angel groups and 20 affiliate members from 49 US states and 6 Canadian provinces.

Angel Investor 255

Angel Investor North America South America Accredited Investor 255

Startup Professionals Musings

JUNE 5, 2015

New crowd funding platforms on the Internet, like Kickstarter and IndieGoGo , as well as the Jobs Act of 2012 , are expected by many to ramp up regular people’s ability to fund new opportunities and kill the need for angel groups. Rose, according to his recent book, “ Angel Investing.” Neither does David S.

Angel Investor 120

Angel Investor Angel Groups Accredited Investor IRR 120

Startup Professionals Musings

MARCH 11, 2016

As an active angel investor myself, I understand how the process works, and I see the disappointment in the eyes of entrepreneurs who approach angel groups for funding and often get turned away for not being timely or prepared in the minds of potential investors. These are all accredited investors who risk their own money.

Angel Investor 120

Angel Investor Intellectual Property Accredited Investor Angel Groups 120

Startup Professionals Musings

OCTOBER 30, 2017

You can find these in your professional circle and your sphere of influence, rather than angel groups and venture capitalists. Unless you are happy with bootstrapping your new business, I recommend that you ignore conventional funding myths, and first seek investors who share your goals and values.

Technical Review 220

Technical Review Accredited Investor Due Diligence Equity 220

Startup Professionals Musings

JANUARY 2, 2022

Asking an angel to work with your company in an advisory role is a great way to establish a relationship that may lead to a cash investment. If you impress the angel, it will likely make her at least an archangel (advocate) when it comes to funding. Court local angel groups.

Angel Investor 384

Angel Investor Advisory Board Database Institutional Investors 384

Startup Professionals Musings

OCTOBER 17, 2022

Perhaps because of their focus on building a large portfolio, or their competitiveness, these angels sometimes accept valuations that cause later friction while moving to VCs, or even other angel groups. This can cause early investor dilution, lower ultimate returns or leave the startup stranded.

Angel Investor 342

Angel Investor Venture Capital Silicon Valley Portfolio 342

Startup Professionals Musings

JULY 9, 2014

Most Angel groups and VCs advertise the startups they have recently funded, with pointers to startup websites, sometimes including open positions. Get to know the people there, and ask them for pointers to new ventures that are still in the formative stage. Your best job leads will come from other entrepreneurs.

Technical Review 250

Technical Review Stock Options Due Diligence Silicon Valley 250

Startup Professionals Musings

NOVEMBER 7, 2014

Most VCs and Angel investors don’t read unsolicited proposals, unless they have met you first, or have a glowing recommendation from another investor or acquaintance. Major platforms are available online to find Angel groups or VCs, including Gust and AngelList. You need an investor, and want to solicit professionals online.

Business Plan 274

Business Plan Technical Review Angel Investor Due Diligence 274

Startup Professionals Musings

JUNE 14, 2013

Major platforms are available online to find Angel groups or VCs, including Gust and AngelList. Thus building a business plan ahead of time will improve your application and chances of success. You need an investor, and want to solicit professionals online. You won’t even be considered without a business plan.

Business Plan 250

Business Plan Technical Review Entrepreneur Angel Investor 250

Startup Professionals Musings

MAY 4, 2016

Angel groups, accelerators, and incubators are pervasive. Professional investors now look for startups through popular online platforms, including Gust and AngelList. Non-professional investors now use crowdfunding sites, like Indiegogo and Kickstarter , for similar access. Measuring progress with big data and analytics.

Intellectual Property 120

Intellectual Property Startup Angel Groups Social Media 120

Startup Professionals Musings

OCTOBER 18, 2015

Most Angel groups and VCs advertise the startups they have recently funded, with pointers to startup websites, sometimes including open positions. Get to know the people there, and ask them for pointers to new ventures that are still in the formative stage. Your best job leads will come from other entrepreneurs.

Technical Review 120

Technical Review Entrepreneur Stock Options Due Diligence 120

Startup Professionals Musings

NOVEMBER 4, 2011

Over the past 10 years, I have had the opportunity to see how the process works, several times from the startup side, and more recently from the angel perspective (as a member of an angel group selection committee).

Intellectual Property 249

Intellectual Property Angel Investor Technical Review Elevator Pitch 249

Startup Professionals Musings

JANUARY 19, 2020

Perhaps because of their focus on building a large portfolio, or their competitiveness, these angels sometimes accept valuations that cause later friction while moving to VCs, or even other angel groups. This can cause early investor dilution, lower ultimate returns or leave the startup stranded.

Angel Investor 314

Angel Investor Venture Capital Silicon Valley Startup 314

Startup Professionals Musings

FEBRUARY 15, 2012

Jason Calacanis, a well-known entrepreneur and Angel investor, opened the debate a while back in a strongly-worded article on his blog which attacked the practice on ethical grounds, and called out popular Angel groups charging fees ranging from several hundred dollars to $5,000 or more. Others , including noted Angel David S.

Angel Groups 237

Angel Groups Angel Investor Due Diligence Seed Stage 237

Startup Professionals Musings

SEPTEMBER 23, 2010

Over the past 10 years, I have had the opportunity to see how the process works, several times from the startup side, and more recently from the angel perspective (as a member of an angel group selection committee).

Angel Investor 224

Angel Investor Intellectual Property Technical Review Elevator Pitch 224

Startup Professionals Musings

DECEMBER 13, 2010

Jason Calacanis, a well-known entrepreneur and angel investor, opened the debate about a year ago in a strongly-worded article on his blog which attacked the practice on ethical grounds, and called out popular angel groups charging fees ranging from several hundred dollars to $5,000 or more. Find and fix that first.

Angel Groups 234

Angel Groups Entrepreneur Angel Investor Due Diligence 234

Startup Professionals Musings

MARCH 27, 2019

Asking an angel to work with your company in an advisory role is a great way to establish a relationship that may lead to a cash investment. If you impress the angel, it will likely make her at least an archangel (advocate) when it comes to funding. Court local angel groups.

Advisory Board 247

Advisory Board Angel Investor Database Institutional Investors 247

Startup Professionals Musings

MAY 20, 2016

With the advent and growth of crowdfunding over the past few years, many entrepreneurs have predicted the demise of those demanding angel investment groups and venture capital organizations. These groups are now largely run by volunteers at no cost to entrepreneurs. Early crowdfunding successes have been undeniable.

Angel Groups 136

Angel Groups Accredited Investor Equity Due Diligence 136

Startup Professionals Musings

DECEMBER 24, 2012

But many entrepreneurs don’t realize that Angels are also extremely discerning in the projects that they will invest in, rejecting approximately 97% of the proposals submitted to them, according to the California Investment Network. Don’t expect the pomp and celebrity of the Angels on Shark Tank , but they do ask a lot of the right questions.

Angel Investor 260

Angel Investor Intellectual Property Elevator Pitch Angel Groups 260

Startup Professionals Musings

AUGUST 3, 2015

In all cases, due diligence is recommended on every potential investor and angel group before spending money you don’t have, looking for money you need. As they say, you only get one chance to make a great first impression, so don’t pitch to a key angel group or venture capital team for practice.

Cost 120

Cost Angel Groups Due Diligence Silicon Valley 120

Startup Professionals Musings

DECEMBER 27, 2014

Perhaps because of their focus on building a large portfolio, or their competitiveness, these angels sometimes accept valuations that cause later friction while moving to VCs, or even other angel groups. This can cause early investor dilution, lower ultimate returns or leave the startup stranded.

Angel Investor 260

Angel Investor Silicon Valley Startup Portfolio 260

Startup Professionals Musings

OCTOBER 27, 2013

Asking an angel to work with your company in an advisory role is a great way to establish a relationship that may lead to a cash investment. If you impress the angel, it will likely make her at least an archangel (advocate) when it comes to funding. Court local angel groups.

Matching 253

Matching Advisory Board Angel Investor Database 253

Startup Professionals Musings

MARCH 27, 2017

Asking an angel to work with your company in an advisory role is a great way to establish a relationship that may lead to a cash investment. If you impress the angel, it will likely make her at least an archangel (advocate) when it comes to funding. Court local angel groups.

Advisory Board 120

Advisory Board Angel Investor Database Institutional Investors 120

Startup Professionals Musings

SEPTEMBER 21, 2012

Asking an angel to work with your company in an advisory role is a great way to establish a relationship that may lead to a cash investment. If you impress the angel, it will likely make her at least an archangel (advocate) when it comes to funding. Court local angel groups.

Angel Investor 245

Angel Investor Advisory Board Database Institutional Investors 245

Startup Professionals Musings

AUGUST 27, 2012

As a member of the local Angel group selection committee, I’ve seen a lot of startup presentations to investors, and I’ve never seen one that was too short - maybe short on content, but not short on pages! A perfect round number is ten slides, with the right content, that can be covered in ten minutes.

Elevator Pitch 247

Elevator Pitch Exit Strategy Burn Rate Merger 247

Startup Professionals Musings

MAY 29, 2017

My angel group always asks the CEO to do the talking, to test their communication skills. Effective communication in business requires an efficient flow of information to all constituents, and ability to share in any media, including speaking, writing, and listening. It also includes using and reading body language and state of mind.

Agile 141

Agile Non-Compete Angel Groups Venture Capital 141

Startup Professionals Musings

FEBRUARY 11, 2012

Of course, you need to listen for biases, but local angel group leaders can quickly tell you who the bad angels and good angels are, and what kind of terms they typically demand. The investment community in any geographic area is not that large, and most investors have relationships or knowledge of most of the others.

Due Diligence 241

Due Diligence Entrepreneur Offshore Angel Groups 241

Startup Professionals Musings

JULY 23, 2011

Asking an angel to work with your company in an advisory role is a great way to establish a relationship that may lead to a cash investment. If you impress the angel, it will likely make her at least an archangel (advocate) when it comes to funding. Court local angel groups.

Angel Investor 242

Angel Investor Advisory Board Startup Database 242

Startup Professionals Musings

JUNE 10, 2011

As a member of the local Angel group selection committee, I’ve seen a lot of startup presentations to investors, and I’ve never seen one that was too short - maybe short on content, but not short on pages! A perfect round number is ten slides, with the right content, that can be covered in ten minutes.

Elevator Pitch 234

Elevator Pitch Exit Strategy Burn Rate Merger 234

Startup Professionals Musings

NOVEMBER 3, 2010

Of course, you need to listen for biases, but local angel group leaders can quickly tell you who the bad angels and good angels are, and what kind of terms they typically demand. The investment community in any geographic area is not that large, and most investors have relationships or knowledge of most of the others.

Due Diligence 224

Due Diligence Offshore Angel Groups Matching 224

Startup Professionals Musings

MAY 19, 2010

As a member of the local angel group Selection Committee, I’ve seen a lot of startup presentations to investors, and I’ve never seen one that was too short - maybe short on content, but not short on pages! A perfect round number is ten slides, with the right content, that can be covered in ten minutes.

Elevator Pitch 235

Elevator Pitch Exit Strategy Burn Rate Merger 235

Startup Professionals Musings

SEPTEMBER 18, 2010

Angel Investor: Writing a business plan for angel investors can be tricky. If you’re pitching to a member of an organized angel group, then a business-like tone is in order. For many angel investors, letting them know “What’s In It For Me” (WIIFM) is critical.

Audience 243

Audience Business Plan Angel Investor Widget 243

Startup Professionals Musings

JUNE 27, 2010

Asking an angel to work with your company in an advisory role is a great way to establish a relationship that may lead to a cash investment. If you impress the angel, it will likely make her at least an archangel (advocate) when it comes to funding. Court local angel groups.

Angel Investor 227

Angel Investor Advisory Board Database Institutional Investors 227

Startup Professionals Musings

MARCH 16, 2022

Angel Capital Association (ACA). The ACA is the angel industry alliance, which now includes a directory to more than 250 angel groups and 14,000 individual angels across North America. They have over 1,700,000 registered members with over 300,000 investors and 1,400,000 entrepreneurs.

North America 337

North America Accredited Investor Angel Investor Angel Groups 337

Startup Professionals Musings

JUNE 14, 2019

Angel Capital Association (ACA). The ACA is the angel industry alliance, which now includes a directory to more than 275 angel groups and 14,000 individual angels across North America. They have over 1,000,000 registered members with over 200,000 investors and 650,000 entrepreneurs.

Angel Investor 241

Angel Investor North America Accredited Investor Angel Groups 241

Startup Professionals Musings

AUGUST 29, 2018

by either angel groups or VCs alone. The new audit, due diligence, and liability implications from equity crowdfunding will likely be extended to all professional investors, thus slowing down all investments, and increasing the costs for angel groups and VCs. That exceeds the amounts contributed in the U.S.

Equity 180

Equity Due Diligence Angel Groups Liquidity Event 180