How Smart Entrepreneurs Select VC / Angel Investors

Startup Professionals Musings

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited Angel investors. Angel investors wish for the same return, but may accept a 5X deal.

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”).

Trending Sources

Challenges and Rewards for Angel Investors

Gust

One of the most common questions we get is: What are the biggest challenges and rewards of angel investing? High net worth individuals become angel investors for a number of reasons, but the opportunity to work with entrepreneurs and provide guidance to founders is typically high on the list.

8 Angel Investors That Entrepreneurs Should Avoid

Startup Professionals Musings

A few angel investors have slipped or fallen from their lofty perch, so entrepreneurs must take great care to validate the character and reputation of every prospective investor. Many entrepreneurs believe all money is created equal. Litigious angels.

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. These are all accredited investors who risk their own money. angel investor early-stage entrepreneur startup

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.

Angel Investors Spotlight: An Inside Look at Hudson Valley Startup Fund’s Investment Process & Advice for Founders

Gust

The post Angel Investors Spotlight: An Inside Look at Hudson Valley Startup Fund’s Investment Process & Advice for Founders appeared first on The Gust Blog. Investors' Insights advice angel investors entrepreneursHudson Valley Startup Fund brings together a network of the region’s successful business and community leaders to give back, supporting the launch of the next Hudson Valley visionaries.

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. USA Angel Investment Network.

11 Angel Investor Blogs You Should Be Reading

Up and Running

In the business world, angel investors are sometimes equated with actual angels, sent to help us fund what could not otherwise be funded. These guardian angels of innovation are responsible for bringing many new ideas to life. A2A—Analyst to Angel.

Impact in Angel Investor Decisions

Seth Levine's VC Adventure

I’ll be speaking at an Impact Angel Group event on February 12th. With a few other angel investors, I’ll be talking to other angel investors, along with prospective angel investors, about the role of impact investing the community, as well as in our own portfolios.

5 Things Startups Can Learn from Angel Investors

Up and Running

Angel investors can teach you a lot about money, whether or not you’re seeking funding from them. I’ve seen this over and over in my dealings as a member of a local angel investment group. What we do at the Willamette Angel Conference is the rule, not the exception.

Getting Value from Your Angel Investors

Rob Go

Nearly all seed rounds we are a part of include angel investors. In almost all of these cases, these smaller investors were included into a syndicate because they “added value” either through domain or functional expertise or through their network.

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. Most of these investors are members of Angel groups that have a rigorous filtering and screening process, to select the top 3% and most fundable proposals.

My First 9 Months as an Angel Investor

Instigator Blog

But that wasn’t angel investing (although it had some similarities). Nine months ago I made my first independent angel investment. I made that mistake with an angel investor once (who invested in Standout Jobs) and it’s one I’ll never repeat. Angel investing is fun. Some parts of angel investing aren’t fun, namely reading legal documents and wiring money. Typically, I like most entrepreneurs I meet. Startups angel investin

How to Find and Close Angel Investors from a Standing Start

View from Seed

Whether an entrepreneur is raising a smaller (pre-)seed round entirely from individuals or she has a seed-stage or larger VC firm involved in (leading) the seed syndicate, it’s somewhere between necessary and optimal to have multiple individual angel investors involved. First and foremost, angels can provide capital. That’s especially true for angels. Again, that’s especially true for angels.

Four Qualities Every Angel Investor Looks For When Backing A Startup

YoungUpstarts

Securing adequate financing for any new venture nowadays is an exceptionally difficult proposition, which is why angel investors are considered so valuable to the startup ecosystem. In general, angel investors tend to group entrepreneurs into two distinct categories.

How to Raise Startup Funding from Unlikely Angel Investors

Up and Running

Angel investors come from a variety of ages, backgrounds, and professions. I’m not your average angel. I’m not active in an angel group. I live in a small town surrounded by farms and I made my first angel investment at 29 because my dad said it was a good idea.

Angel Investors Skip Startups With No Profit Motive

Startup Professionals Musings

Angel investors and venture capitalists don’t make equity investments in non-profits. The simple reason is that it’s impossible to make money for investors when the goal of the company is to not make money.

How to Impress Angel Investors and Make It into “Startup Heaven”

Up and Running

Got a question for one of the angel investors mentioned below? Today is Ask an Angel day! Tips from real angel investors about how to impress them and stand out from the crowd. How Angels Invest. I also learned quickly that no two angels are alike.

5 Things To Look For In An Angel Investor

YoungUpstarts

Your first investors can be your most valuable assets so when looking to raise finance you should always look beyond the capital to what else the angel can bring to your business. Below is some guidance on what to look for in a potential investor: 1.

Angel Investors Do Make Money, Data Shows 2.5x Returns Overall

Gust

I began studying angel investing returns about 10 years ago as a result of a problem I couldn’t resolve: The investing world seemed certain that angel investors were rubes. Are angel investors just unwitting philanthropists or legitimate entrepreneurial investors?

Learn From the 5 Core Principles of Angel Investors

Startup Professionals Musings

If your startup is looking for an Angel investor, does it makes sense to present your plan to flocks of Angels, and assume that at least one will swoop down and scoop you up? Maybe friends and family will give you money with no plan, but Angel investors expect a real plan.

Five Things Every Entrepreneur Should Know About Angel Investors

Startup Professionals Musings

If your startup is looking for an angel investor, does it makes sense to present your plan to flocks of angels, and assume that at least one will swoop down and scoop you up? Maybe friends and family will give you money with no plan, but angel investors expect a real plan.

Entrepreneurs Court New Super-Angel Investors

Startup Professionals Musings

I see now emerging a new wave of investors, popularly known as “super-Angels,” micro-VCs, or “super-seed” investors. Due to the struggling economy as well, traditional individual Angel investors haven’t been able to fill the gap.

Entrepreneurs: The Hidden Costs of Angel Investors

Allen's Blog

Entrepreneurs should be aware of two costs of taking money from angel investors (there are obvious benefits to consider, too). Administrative Overhead (Time Sink) : investor relations, for investors of all stripes, takes time by the CEO (but is very important). So, large numbers of angel investors can be a huge time sink for the CEO of a start-up (the highest number in any of my "Sherpa" companies was 37, and managing them was a nightmare).

Suggestions for Angel Investors

Feld Thoughts

I’m on an Acela train between Boston and New York (listening to Boston’s More Than A Feeling – how recursive) on my way to the TechStars Boston 2010 Investor / Demo day. I wasn’t able to make it to Boston yesterday for the Angel Boot Camp as I was running around NYC with the CEO of a company I invested in last week introducing him to a bunch of potential customers and partners. It sounds like Angel Boot Camp rocked. Run in a pack: The best angels run in packs.

Angel Investors Do Make Money, Data Shows 2.5x Returns Overall

techcrunch.com

Editor’s note: Robert Wiltbank, PhD , is a professor at Willamette University, where he and Wade Brooks run an angel investing fund managed by second-year MBA students. Are angel investors just unwitting philanthropists or legitimate entrepreneurial investors?

5 Angel Investor Biases That You Can Capitalize On

Startup Professionals Musings

If your startup is looking for an angel investor, does it makes sense to present your plan to flocks of angels, and assume that at least one will swoop down and scoop you up? Maybe friends and family will give you money with no plan, but angel investors expect a real plan.

The Why and How Of Updating Your Angel Investors

OnStartups

But almost nothing concrete is available on the care and feeding of your investors. The reason is: The CEO is the investor''s user interface into the business. It''s how investors see what''s going on, and in some minimal ways, interact with the business.

How to be an angel investor, Part 3

Venture Hacks

This guest post is by Tyler Willis , an entrepreneur and angel investor. For several interesting macro-economic reasons [1], more and more people are becoming angel investors. This is a good thing – it allows more investors to participate in a high-growth (but high-risk) area of our economy. Two years ago, my first company was acquired by Oracle and four members of our early team, including myself, became part time angel investors. Angels

Angel Investors Won’t Swoop Down on Your Startup

Startup Professionals Musings

A while back, I outlined “ Most Startups Get No Professional Investor Cash ” for startups, listing angel investors as alternative #6. I still get a lot of questions on these mysterious and often invisible investors, so here is another attempt to bring them out of the ether.

Six Great Places to Find Angel Investors

Growthink Blog

Last year, according to the Center for Venture Research at the University of New Hampshire, 67,030 ventures received angel funding. In total, these angels invested $22.9 So, clearly, there are a lot of angel investors out there.

8 Reasons All Angel Investor Money May Not Be Equal

Startup Professionals Musings

A few angel investors have slipped or fallen from their lofty perch, so entrepreneurs must take great care to validate the character and reputation of every prospective investor. Many entrepreneurs believe all money is created equal. Litigious angels.

Startup Angels Brings its Workshop to Austin to Teach People to Become Angel Investors

SiliconHills

By LAURA LOREK Reporter with Silicon Hills News Entrepreneurs are everywhere in Austin and Central Texas. But Startup Angels, based in Washington, D.C., And Leslie Jump, its founder, is coming to Austin next week to do a workshop to train high-net worth individuals how to be […] The post Startup Angels Brings its Workshop to Austin to Teach People to Become Angel Investors appeared first on SiliconHills.

DC 30

A Choir of Angel Investors Sing Different Parts

Genuine VC

Just as often, however, we’re investing alongside individual angel investors who are participating in the round as well. Angel investors come in many shapes and sizes, however. And it’s not always easy to recognize the pros and cons of taking money from individual investors, or how to even seek them out in the first place. The choir of angel investors out there is comprised of a number of players which sing different parts: The Super Angel.

Entrepreneurs Turned Angel Investors: A Look At Some Of The Best

YoungUpstarts

An angel investor who also has experience in the start-up world has a much greater understanding of how businesses work, what fears and concerns the start-up owner or owners have and much more. 3 Great Examples of Entrepreneurs Turned Investors.

3 Little Known Reasons Why Angel Investors Fund Entrepreneurs

Growthink Blog

When most entrepreneurs start out and realized they need funding, they are typically presented with three options. The other two funding options are typically in the form of equity, and they are 1) equity from individual or "angel" investors and 2) equity from venture capitalists.

How and Why To Be an Angel Investor

David Teten

Enter Dave: Angel investing is a great way to make a lot of money. Either way, angel investing is on the rise! Q: How popular is angel investing ? However, those angels constitute only about 4% of the estimated 7.1 Angel Investment Activity, 2002-2013.

What does it feel like to invest in a failed startup as an angel investor?

Gust

If you are an angel investor, the only way to do it is to take things very seriously. If you take angel investing seriously, you should aim to develop a portfolio of at least 30-40 investments over 5-10 years of active investing. If you can’t psychologically take the complete failure of at least one company (let alone 20 or more), then you shouldn’t be angel investing in the first place. How much effort the entrepreneur put into trying to save the ship.

What are some things that truly committed angel investors do for startups?

Gust

The ideal angel investor would spend a great deal of his/her time working on behalf of the company in support of the CEO, in every way other than being a full-time employee. the best angels are good for the same categories of contributions that not-for-profit institution look for when recruiting board members: the Three Ws of Wealth , Work and Wisdom. As a result, angels can provide insights and experience that may be virtually impossible to obtain elsewhere.