The Role of Angel Groups Going Forward

This is going to be BIG.

This week, I spoke to one of the longest running and most active angel groups in the country, the New York Angels. Luckily for all of us, including the New York Angels themselves, the ecosystem has bloomed. In a world where startups can pick up 750k in from just a couple of seed funds, or crowdsource a bunch of angels sight unseen, what's the role of an angel group? An angel belonging to a group could find more dealflow.

Angel Investors vs. Angel Groups

Business Plan Blog

Angel Investors vs. Angel Groups. What is an angel investor? Angels are often former or current entrepreneurs themselves, as well as business professionals and corporate leaders. There are a few reasons why angels make investments, and those are to gain a return on their money, to participate in the entrepreneurial process, and to give back to their communities by catalyzing economic growth. Angels typically invest in companies local to them.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Angel Investors vs. Angel Groups

Business Plan Blog

Angel Investors vs. Angel Groups. What is an angel investor? Angels are often former or current entrepreneurs themselves, as well as business professionals and corporate leaders. There are a few reasons why angels make investments, and those are to gain a return on their money, to participate in the entrepreneurial process, and to give back to their communities by catalyzing economic growth. Angels typically invest in companies local to them.

2011 Valuation Survey of North American Angel Groups

Gust

During the summer of 2010, I developed a workshop, A New ACEF Valuation Workshop for Angels and Entrepreneurs. To provide some reference points, I surveyed thirteen angels groups in North American to determine their recent experience in negotiating the pre-money valuation of pre-revenue companies. Because of the interest in the 2010 survey, I decided to survey a larger number of North American angel groups this summer (2011). Boise Angel Alliance.

Do Angel Groups Belong in Heaven or Hell?

Professor VC

During the set break (perhaps influenced by the large amount of second half smoke consumed), I thought about angel groups in relation to the lyrics above, particularly the "you analyze me, pretend to despise me" line. In theory, angel groups are great. From an entrepreneurs standpoint, you can get a much larger investment than with individual angels, have potential follow-on support and leverage skills and network of a large investor base.

Should Angels break free from angel groups ?

Fred Destin

I hear a lot of commentary in the Boston area about how VC's have needed to replace angels in seed rounds. Angel groups in the Boston area are a force. Entrepreneurs complain loudly about angel groups. The experience leaves a sour taste for many, and the complexity of dealing with the groups requires dedication and even expertise in navigating what is perceived to be a tortuous process.

Angel Groups Panning for Gold

Professor VC

This got me thinking about the "suckers bet" of angel investing and how most don't strike gold for a variety of reasons. Interesting enough, it was an entrepreneur (John Nordstrom) who was able to get out of town with his gold and opened a little shoe store in Seattle. Earlier this year, I left Sand Hill Angels , the angel group I was actively involved with since 2005. I've been meaning to share my thoughts about angel groups and will do so in an upcoming post.

What are the best innovations to come out of the financial industry in recent times?

Gust

Today, over 200,000 companies are using it to organize their materials for raising equity, over 1100 venture capital funds and organized business angel groups are using it to manage their deal flow and portfolios, and nearly 50,000 accredited investors are directly using it to discover early stage investment opportunities and connect with entrepreneurs. Gust News angel groups businesses financial industry Gust innovations startups

10 Keys To Making Money By Investing In Entrepreneurs

Startup Professionals Musings

Investing in entrepreneurs and startups is a fun but different world from investing in conventional stocks, bonds, and commodities. Fund an entrepreneur you know and trust. Most entrepreneurs start asking for money from this tier, when they have very little more than an idea. Join an existing angel investor group. Some of these groups also offer you the option of putting your money into a multiple-startup fund to spread your risk.

5 Ways To Safely Sample The Entrepreneur Lifestyle

Startup Professionals Musings

If you think you are the perfect fit for the entrepreneur lifestyle, but you’re not yet sure if you’re ready to start your own, then I recommend that you take a job with an existing startup first to validate the culture realities against your dream. Hang out where entrepreneurs meet. There are many organizations which cater to entrepreneurs, including The Indus Entrepreneurs (TiE) and local startup incubators. Your best job leads will come from other entrepreneurs.

Should Entrepreneurs Pay to Pitch to Investors?

Startup Professionals Musings

If you are new to the startup space and angel investing, you probably don’t realize that some groups of angel investors charge entrepreneurs a fee to pitch to their groups. 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.

10 Keys To Giving The Right Entrepreneur Your Money

Startup Professionals Musings

Investing in entrepreneurs and startups is a fun but different world from investing in conventional stocks, bonds, and commodities. Fund an entrepreneur you know and trust. Most entrepreneurs start asking for money from this tier, when they have very little more than an idea. Join an existing Angel investor group. Some of these groups also offer you the option of putting your money into a multiple-startup fund to spread your risk.

The Qualities of a Leader - Startups and angels: Along the way to.

Tim Keane

Startups and angels: Along the way to success. By Tim Keane, Angel Investor, Golden Angels Investors, LLC. I'm in Dublin this week and was at the Halo Business Angel Network meeting on Monday evening. They're an impressive group, kind of an association of all of the angel groups in Ireland who work together to achieve results. I'm in Dublin this week and was at the Halo Business Angel Network meeting on Monday evening.

Entrepreneurs Due Diligence on Investors Is Smart

Startup Professionals Musings

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. Network with other entrepreneurs. Entrepreneurs are optimists by nature, so I definitely recommend the involvement of your favorite attorney (usually the pessimist). A successful entrepreneur-investor agreement better be the beginning of a long-term relationship.

Entrepreneurs, Commit Not These 7 Deadly Sins

YoungUpstarts

There’s a lot of focus these days on teaching entrepreneurs how to do startups right : Validate the market before you build a prototype. The truth is, there are “wrong” mistakes that entrepreneurs can make early in the game, mistakes that will impact a startup’s ability to attract capital investment later on. There’s nothing glamorous about being an entrepreneur. Investors invest in entrepreneurs. Angel and other seed fund investors fund prototypes.

How Many Entrepreneurs Really Need a Business Plan?

Startup Professionals Musings

On a regular basis, I am approached by entrepreneurs who assert that business plans are a waste of time. They cite sources like a recent BusinessWeek story, “ Real Entrepreneurs Don’t Write Business Plans ” and this NY Times article. From my perspective as a professional investor and long-time advisor to entrepreneurs, much of this urban legend advice is just plain wrong. Major platforms are available online to find Angel groups or VCs, including Gust and AngelList.

An Entrepreneur’s Guide to Funding the Business

The Startup Magazine

A lot of people are choosing the entrepreneur life right out of college instead of finding a traditional job. They’re important, but in order to propel these ideas forward, entrepreneurs need business funding. New entrepreneurs fail to secure funding because, despite their great idea, they have poor execution. Let’s dive into the most common funding options among entrepreneurs. Angel Investors.

Being The Best You Can Be - Startups and angels: Along the way to.

Tim Keane

Startups and angels: Along the way to success. By Tim Keane, Angel Investor, Golden Angels Investors, LLC. « The Whitehorse Daily Star - good advice for entrepreneurs | Main. Last week, our angel group reviewed a business with an online lie detector technology.     What does that mean for entrepreneurs?  Last week, our angel group reviewed a business with an online lie detector technology. 

So You Wanna be a VC?

Professor VC

When AngelList first launched syndicates a few years ago, I was very skeptical of the idea of angels taking carry on my investment. I've always felt that as an angel we should be sharing our best opportunities with each other and follow the golden rule. I work hard on mine and you work hard on yours and we all win (entrepreneurs, angels, and upstream VC's). It's great for entrepreneurs! angel groups angel investing AngelList syndicates venture capital

5 Equity Crowdfunding Reflections Before You Sign Up

Startup Professionals Musings

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.

Equity 266

8 Tips For Getting Your Startup Right The First Time

Startup Professionals Musings

The rate of new entrepreneurs increased between 2013 and 2019, from 280 out of 100,000 to 310 out of 100,000 of the adult population. Angel groups, accelerators, and incubators are pervasive. Rose entrepreneur kauffman resources startup

Democratization of Angel Investing

Professor VC

I had a conversation recently with Alex Mittal, Co-founder and CEO of FundersClub (FC) and decided to revisit my blog post from last fall that was skeptical of crowdfunding for angel investments. FC is the latest Kickstarter type site to launch to give entrepreneurs the opportunity to raise financing from a large number of individuals. In many respects, the service is similar to the way Angel Groups operate, or at least the way Sand Hill Angels, where I was a long time member does.

Startups On Startups: Entrepreneurs Reveal Best Advice For Building A Business

YoungUpstarts

Columbus is the fastest-growing city in the country for Startup Activity, and we’re seeing first-hand the growing number of entrepreneurs in the Midwest. Having spent decades helping entrepreneurs build great companies for most of my career, I know some of the most helpful advice comes from other entrepreneurs who have been through the process and can share key lessons learned. According to GenomeNext CEO James Hirmas, entrepreneurs should be laser-focused.

Angel Investors Are Still The Lifeblood Of Startups

Startup Professionals Musings

Entrepreneurs who require funding for their startup have long counted on self-accredited high net worth individuals (“angels”) to fill their needs, after friends and family, and before they qualify for institutional investments (“VCs”). 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.

Trends in Seed Stage Funding for Entrepreneurs

Gust

I’ve recently taken a look at seed stage funding by venture capitalists (VCs) and angel investors over the past five years. Then, I looked at angel investment in the US over the past five years, as reported by the Center for Venture Research , in billions of dollars. US Angel Investment – All Regions. This data on angel investing is clearly not as granular as the MoneyTree© data for VC investing. million versus $300,000) than for seed rounds from angels.

Entrepreneurs: Due Diligence on Investors is Smart

Gust

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. Network with other entrepreneurs. Entrepreneurs are optimists by nature, so I definitely recommend the involvement of your favorite attorney (usually the pessimist). A successful entrepreneur-investor agreement better be the beginning of a long-term relationship.

Crowd Funding Has Not Killed Angel Investing Yet

Startup Professionals Musings

Entrepreneurs who require funding for their startup have long counted on self-accredited high net worth individuals (“angels”) to fill their needs, after friends and family, and before they qualify for institutional investments (“VCs”). 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.

When should you go for equity financing?

Berkonomics

We’ll call these “inside angels.” Often grouped into formal organizations, these investors are sophisticated, helpful, and connected. Angel investment groups or funds. Angel groups invest from $250,000 to $1,000,000 or more in qualified investments.

Presenting Your Case to Investors is Rarely Free

Startup Professionals Musings

If you are new to the startup space and Angel investing, you probably don’t realize that some groups of Angel investors charge entrepreneurs a fee to pitch to their groups. 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.

6 Reasons Startups Need All Angels Plus Crowd Funding

Startup Professionals Musings

Entrepreneurs who require funding for their startup have long counted on self-accredited high net worth individuals (“angels”) to fill their needs, after friends and family, and before they qualify for institutional investments (“VCs”). Rose, according to his latest book, “ Angel Investing.” In fact, angel investing seems to be leveling off at around $25 billion annually, while crowd funding is setting new records, expected to top $34 billion in 2017.

IRR 174

7 Strategies To Reduce The Cost Of Finding Investors

Startup Professionals Musings

Most new entrepreneurs assume that great investors will find their startups based on the compelling solution the founders have created. It does happen once in a while, but usually only for entrepreneurs who have already spent money promoting their efforts, and a large amount of precious time connecting with their peers and the investment community. Entrepreneurs who are not known by at least one investor are presumed to have not done their homework.

Cost 216

Professional Investors Qualms About Crowdfunding

Startup Professionals Musings

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. In fact, the latest figures show that crowdfunding has already grown to over $30 billion in 2015, exceeding the amounts contributed by either angel groups or VCs alone. As an accredited angel investor, I claim to be one of those professionals, and I’ve talked to many more.

If You Can’t Find An Angel Investor, Look Again, Here

Startup Professionals Musings

If your startup is looking for an angel investor, it makes sense to present your plan to flocks of angels, and assume that at least one will swoop down and scoop you up. The challenge is to find the right angel for you, and for your situation. Here are some basic principles: Angels invest in people, more often than they invest in ideas. Angel investors are people too. But now to answer one of the most common questions I get “How do I find angel investors?”

7 Steps To Finding Investors Aligned With Your Values

Startup Professionals Musings

Many aspiring entrepreneurs try to raise capital, without first understanding and complying with government and state rules for disclosure, securities registration, private offerings, and accredited investors. Many entrepreneurs see fund raising as a part-time task, behind high-priority solution development efforts. You can find these in your professional circle and your sphere of influence, rather than angel groups and venture capitalists.

Equity 234

1M/1M Strategy Roundtable For Entrepreneurs: Ownership Matters

ReadWriteStart

An incubatee with Indian Angel Network, Anirudh Motwani from New Delhi, India, discussed IndiaCollegeSearch , a vertical search engine to address the problem of finding detailed information about various colleges and institutions in India. For perspective, I also joined a $1,000/month CEO-roundtable group, with professional speakers and full day, once-per-month meetings. What a great product - truly an excellent value for entrepreneurs.

India 105

Where To Find The Most Angels To Fund Your Startup

Startup Professionals Musings

If your startup is looking for an Angel investor, it makes sense to present your plan to flocks of Angels, and assume that at least one will swoop down and scoop you up. The challenge is to find the right Angel for you, and for your situation. Here are some basic principles: Angels invest in people, more often than they invest in ideas. Angel investors are people too. But now to answer one of the most common questions I get “How do I find Angel investors?”

8 Ways To Get Off The Ground With Angel Investors

Startup Professionals Musings

Angel investors are still the lifeblood of early-stage startups, despite the surge of activity in crowdfunding and an increasing early interest from venture capitalists. According to the Angel Capital Association , at least 300,000 people have made angel investments in the last two years, totaling $24 billion in the U.S. Contrary to a popular myth, angels don’t fund dreams. Asking angel groups for money before knowing anyone in the group is not recommended.

Finding The Right Angel Investor For Your New Venture

Startup Professionals Musings

If your startup is looking for an angel investor, it makes sense to present your plan to flocks of angels, and assume that at least one will swoop down and scoop you up. The challenge is to find the right angel for you, and for your situation. Here are some basic principles: Angels invest in people, more often than they invest in ideas. Angel investors are people too. But now to answer one of the most common questions I get “How do I find angel investors?”

Start Here if You are Looking for Angel Investors

Startup Professionals Musings

If your startup is looking for an Angel investor, it makes sense to present your plan to flocks of Angels, and assume that at least one will swoop down and scoop you up. The challenge is to find the right Angel for you, and for your situation. Here are some basic principles: Angels invest in people, more often than they invest in ideas. Angel investors are people too. But now to answer one of the most common questions I get “How do I find Angel investors?”

Strategy Roundtable For Entrepreneurs: When Keywords Are Competitive

ReadWriteStart

For this week's One Million by One Million roundtable, we discussed an important topic that many entrepreneurs are facing. Now if you do the research on the keyword groups that are relevant for this category of products, for example, "diaper bags" and related keywords, you will find that the query yields millions of searches. In general, a key point that I encourage entrepreneurs to consider is whether or not you are building a cash business or an exit business.

PPC 101

A Perspective On When A Business Plan Adds Value

Startup Professionals Musings

As a startup mentor and investor, I am approached regularly by aspiring entrepreneurs who assert that business plans are a waste of time. They cite sources like the BusinessWeek story, “ Real Entrepreneurs Don’t Write Business Plans ” and this Forbes article. Based on my experience, a business plan always adds value to the entrepreneur – most people can’t build a complete plan in their head, and need the process of organizing it on paper to make it consistent and complete.

10 Action Items to Keep Angel Investors Hovering

Startup Professionals Musings

Every new startup I know dreams of being funded early by one of the 318,000 active Angel investors in the USA alone. 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.

6 Tips For Entrepreneurs Who Think They Can Dance

Startup Professionals Musings

Over time, I’ve concluded that even startup entrepreneurs can learn a few things from this one. I’m on the selection committee of our local Angels group, so I know that every CEO approaching our group for funding goes through ten minutes of creative “dancing,” to give us a basis for selecting startups that are most qualified and “ready” to proceed to the next level. Some entrepreneurs give the same talk, no matter what the audience.