Startup Professionals Musings

MAY 4, 2016

Building a minimum viable product, with customer validation. Early customer feedback will position your solution, and help you make pivots before critical time and money are lost. Angel groups, accelerators, and incubators are pervasive. Just make sure you can fill in all the details.

Intellectual Property 120

Intellectual Property Startup Angel Groups Social Media 120

NZ Entrepreneur

DECEMBER 10, 2020

Ice Angels chair Michael Murphy liked what StockTrim were doing and was happy to become chair of StockTrim’s board of directors and become one of the first investors. “He He got us in front of the Ice Angels and a number of them invested,” Sutton says. “I He found many private investors were interested in him as much as StockTrim.

Technical Review 103

Technical Review Software Review Due Diligence Startup 103

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). Remember to aim the content of both of these at investors, not customers. Free trials don’t count.

Intellectual Property 249

Intellectual Property Angel Investor Technical Review Elevator Pitch 249

Startup Professionals Musings

JUNE 14, 2013

Major platforms are available online to find Angel groups or VCs, including Gust and AngelList. There is no substitute for knowing your customers first hand, and iterating on a minimum viable product to find the most marketable solution. You need an investor, and want to solicit professionals online.

Business Plan 250

Business Plan Technical Review Entrepreneur Angel Investor 250

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). Remember to aim the content of both of these at investors, not customers. Free trials don’t count.

Angel Investor 224

Angel Investor Intellectual Property Technical Review Elevator Pitch 224

Tim Keane

DECEMBER 14, 2009

   We worked all day building market strategies for customers while we tried to embody our expertise on software that would expand the company's reach.    Some angel groups charge you money to pitch your idea to them.    Angels can allow founders to partially cash out if they choose to. 

Burn Rate 60

Burn Rate Angel Groups Seed Stage Startup 60

Both Sides of the Table

AUGUST 14, 2009

At an angel round you can get away with no market validation. release out the door and get some customers using it, or friendly people piloting it then at least there is some validation to the product and some people to speak to about their experiences. Professional angel associations – This one is the source of much controversy.

Silicon Valley 291

Silicon Valley Ireland Technical Review Valuation 291

Up and Running

JULY 6, 2016

I’ll join in the due diligence for my angel group, test for myself, and develop my informed opinion. When it involves my specific investment group, I trust other members who do know. For plans and pitches, we look for the patents, customer testimonials, and backgrounds and achievements of the team as validators.

Technical Review 72

Technical Review Software Review Business Plan Development Team Review 72

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

Gust

JANUARY 15, 2014

Unfortunately, there isn’t (and since Google hasn’t fixed Gmail yet, if you’re actually a paying customer for Google Apps, instead of a free customer, you have strictly limited Gmail mail storage, and are not allowed to purchase more, at any price!) But I digress [harumph]. So I had to create one!

Angel Investor 119

Angel Investor Belarus Portugal Accredited Investor 119

Berkonomics

JUNE 2, 2022

Looking for an entrance into a VC, an angel group, a bank, a CxO for a sales opportunity, or any other entity? Are you working with or selling to a particularly important competitor to your target customer? What’s a gatekeeper? An inside name is an excellent ice–breaking opportunity.

Angel Groups 62

Angel Groups Naming Sales Partner 62

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! Here is how and why it works, including a customer-centric quantification of the benefits. Opportunity sizing.

Elevator Pitch 247

Elevator Pitch Exit Strategy Burn Rate Merger 247

David Teten

SEPTEMBER 23, 2017

A major angel group used Influitive , an advocate management tool, to track, activate and motivate their members. A number of analysts have particular focus on serving the customers of technology companies, e.g., Gartner and 451 Research. Many tools designed for B2B marketing in general are also relevant to investors.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Austin Startup

MARCH 19, 2017

We are looking for companies that have built a compelling MVP and have started to gain early customers, but most of all we want to see great people who we believe in and have demonstrated that they can be resourceful and learn from their mistakes. The Central Texas Angel Network is one of the most active angel groups in North America.

Silicon Valley 54

Silicon Valley Austin North America Texas 54

Gust

DECEMBER 16, 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 179

Angel Investor Intellectual Property Elevator Pitch Angel Groups 179

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

Steve Blank

JULY 1, 2014

I use the Investment Readiness Level as part of my sessions to help the students understand that being ready for investment means that besides having a pretty PowerPoint, they need to do real work and show Customer Development progress. Since I began incorporating the Investment Readiness Level framework I’ve made three observations.

Sacramento 306

Sacramento Framework Customer Development Lean 306

Both Sides of the Table

APRIL 13, 2011

.“… “Then we engage with the product and the entrepreneur and because we know these areas very well we don’t have to spend a lot of time understanding the market or understanding the customer.”. National Venture Capital Group endorsed it. Some Angel groups endorse it.

Technical Review 288

Technical Review Venture Capital Silicon Valley Software Review 288

Up and Running

MAY 12, 2015

Ask an angel investor: Targeting a particular angel investor can be a good tactic, as they are often willing to evaluate your pitch. Tim advises checking out Gust, which lists regional and local angel groups. From there, you can reach out to an angel in your area. Ask your intended customers for feedback.

Angel Investor 60

Angel Investor Software Review Technical Cofounder Due Diligence 60

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! Here is how and why it works, including a customer-centric quantification of the benefits. Opportunity sizing.

Elevator Pitch 234

Elevator Pitch Exit Strategy Burn Rate Merger 234

Up and Running

AUGUST 21, 2014

Other factors that can contribute to a collapse include poor customer service, poor management, and unclear knowledge of the marketplace. Assembling investors is another useful option if you need more in the bank, as venture capital groups or angel groups can provide extra leverage. Finally, crowdfunding is a new option.

Security 154

Security Venture Capital Angel Investor Small Business Administration 154

Gust

JANUARY 15, 2014

Unfortunately, there isn’t (and since Google hasn’t fixed Gmail yet, if you’re actually a paying customer for Google Apps, instead of a free customer, you have strictly limited Gmail mail storage, and are not allowed to purchase more, at any price!) But I digress [harumph]. So I had to create one!

Angel Investor 70

Angel Investor Belarus Portugal Accredited Investor 70

Startup Professionals Musings

MAY 29, 2017

My angel group always asks the CEO to do the talking, to test their communication skills. A quest for excellence is the ability to hold your company and team to the highest standards, and to consistently exceed the expectations of customers. 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

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! Here is how and why it works, including a customer-centric quantification of the benefits. Opportunity sizing.

Elevator Pitch 235

Elevator Pitch Exit Strategy Burn Rate Merger 235

YoungUpstarts

MARCH 31, 2016

Sure, your plan needs to include pro formas and cash flow projections, but if you want to seal the deal, show how you have validated your concept with real customers. Think about sales as the opportunity to help a customer solve a problem. And if it does, why wouldn’t you want to help customers gain those advantages?

United Kingdom 100

United Kingdom Entrepreneur Oklahoma Ohio 100

Up and Running

JUNE 20, 2013

The video I made was of my customers talking about why they loved our website. We also included the successes we had already accomplished, and intermingled them with the customer testimonials. Let angels know about Gust. Once you get your Gust profile all buttoned up, it’s time to share it with the angel investor groups on Gust.

Angel Investor 68

Angel Investor Angel Groups Video Business Plan 68

Gust

AUGUST 19, 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! Here is how and why it works, including a customer-centric quantification of the benefits. Opportunity sizing.

Elevator Pitch 146

Elevator Pitch Exit Strategy Burn Rate Merger 146

David Teten

FEBRUARY 6, 2013

How to make the most out of angel group participation. How to collaborate effectively with other angel groups. We will also discuss the latest trends in angel investing and where the industry is headed next. For a preview of the discussion, see “ Introduction to Angel Investing ”.

Private Equity 114

Private Equity North America Cofounder Angel Groups 114

Austin Startup

MARCH 4, 2019

it could be your next investor or a big customer or the next president of the U.S. If you’re newer to angel investing, angel groups are a great avenue to build your understanding and confidence as an investor. You never know who might roll through while you’re in there?—?it or maybe just #GrumpyCat.

Silicon Valley 50

Silicon Valley Technical Review Texas Venture Capital 50

Tim Keane

SEPTEMBER 30, 2010

They're an impressive group, kind of an association of all of the angel groups in Ireland who work together to achieve results. All of us like leaders of ventures who:  Have a passion for the customer, and a deep understanding of the customer's business. 

Ireland 60

Ireland Wisconsin Angel Groups Bootstrapping 60

Steve Blank

APRIL 7, 2011

Everyone I met in this program “gets” the principles of Agile, Lean and Customer Development big time. You see it in the existing angel groups and VC’s. Getting a few experienced super-angels and/or VC’s seeding 5-10 Lean Startup deals here a year, with a couple of Cleantech/energy deals as well, could kickstart the culture.

Michigan 307

Michigan Silicon Valley Venture Capital Incubator 307

The Next Web

AUGUST 5, 2012

Survey the Local Customers. Ideally, your company will grow because of a tight-knit group of local advocates who will generate buzz through word of mouth and support you through thick and thin. Is your potential relocation site a place where a substantial number of your ideal customers already live? . - Ben Lang , EpicLaunch.

Angel Groups 146

Angel Groups Affiliate Incubator Boston 146

Up and Running

JUNE 25, 2014

For those businesses that are already up and running, after that startup phase, you may have a working capital need, a permanent need that your customers pay you, let’s say in 90 days, any invoice come for 90 days for a product you sell but your suppliers need to get paid in 30 days and you have a 60 day gap. Gust.com , check it out.

Small Business 89

Small Business SBA Finance Bankruptcy 89

David Teten

MARCH 24, 2011

The NY Angels website says this clearly. However, another member said, “I guess I view this through more of a "customer is always right" lens. It seems in this case, for whatever reason, language posted on [NY Angels] website wasn’t sufficient.

New York 122

New York Warrant Angel Groups Architecture 122

Berkonomics

FEBRUARY 25, 2016

Looking for an entrance into a VC, an angel group, a bank, a CxO for a sales opportunity, or any other entity? Are you working with or selling to a particularly important competitor to your target customer? Do you have any contacts or friends within the target company? An inside name is an excellent ice–breaking opportunity.

Angel Groups 48

Angel Groups Naming Sales Partner 48

ReadWriteStart

OCTOBER 28, 2010

At today's roundtable we saw three very nice businesses, each with pilot customers, and each working on real problems. Antonio has 100 trial customers at the moment, and is looking to figure out exactly what his company positioning is going to be. At the end of the session, each left with specific action items.

Partner 117

Partner Belgium Portugal Bootstrapping 117

Up and Running

MAY 11, 2011

Tweet Having just completed my spring business plan season — three big business plan contests and our angel group investment — I think it’s a good time to poke some holes in several damaging and far-too-common myths about startups. In the best businesses, every customer is a boss.

Oregon 121

Oregon Angel Groups Cofounder Business Plan 121