8 Insights For Startups To Attract Angel Investors

Startup Professionals Musings

But many have no insight or connections to the ethereal angel investment community, which actually funds more startups then all other venture sources combined (over $25 billion annually). Angels are typically current or former entrepreneurs who want to bring more than money to your startup.

Understanding Different Types of Angel Investors

View from Seed

We at NextView Ventures invest exclusively in a startup’s seed-stage round , meaning that many if not most of our deals are made alongside individual angel investors. These angels, however, come in many different shapes and sizes. The Super Angel. The Domain Angel.

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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.

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.

5 Tips for New Angel Investors

This is going to be BIG.

Over the course of the lifetime of a new angel investor, they'll do 70% of all of the angel investments they'll ever make in year one. With a little patience, forethought, and strategy, you can avoid angel burnout. Being a good angel or VC has a lot to do with pattern matching. 2) Network with as many other angel investors as possible. Investors with industry expertise are invaluable in helping disruptive startups cross the chasm.

What is a good site or Gmail extension for an angel investor to manage their startup deals?

Gust

When I started my angel investing over a decade ago, there was no such thing as a site to handle the surprisingly-challenging process of keeping track of all the information regarding all the companies with which I was working. Gust News angel investor Gust startup deals

As a new independent angel investor, how will I find new companies to invest in?

Gust

For a new angel investor, by far the best thing to do is to join a local angel investor group that belongs to the Angel Capital Association. But regardless of the specifics, what they all have in common is bringing together a group of active Accredited Investors interested in supporting young startups. Most groups run regular education sessions for new members, and provide mentoring for less experienced investors by those with many deals under their belt.

Ending Our FG Angels Experiment

Feld Thoughts

After two years of a dedicated experiment, we’ve decided to stop making new investments via our FG Angels Syndicate. The Monday after AngelList announced their Syndicate product in September 2013 we decided to to jump in with both feet and start FG Angels. As a result, we were one of the very first syndicates and the first VC firm to create a syndicate. It took a few months for AngelList to gear up Syndicates so that they actually worked.

The Good, Bad, and Ugly of AngelList Syndicates

Inc Startups

A company called AngelList came out with a new product called AngelList Syndicates. Through AngelList Syndicates wealthy individuals can invest their money with so-called "angel" investors, who will turn around and invest the pooled money into start-ups.

The Importance of Robust Angel Ecosystems

Seth Levine's VC Adventure

Earlier this week I gave the keynote address at the Colorado Angel Capital Summit. While the audience was Colorado focused, the overall message I delivered about the angel ecosystem is very relevant to all entrepreneurial communities.

What are the biggest global events for Venture Capitalists and Business Angels where they can learn about their own business?

Gust

There are surprisingly few such conferences, for the very good reason that there are actually relatively few such people (venture capitalists and ‘professional’ angel investors) to attend them! But that said, here are the biggest (i.e., “only” events of their type): Business Angels. Angel Capital Association (US) Annual Summit. NACO National Angel Summit. Both Angels and VCs.

Visiting Angels and Entrepreneurs in Northern Europe

Angel Investing News

My wife, Ann, and I visited Ireland, Russia, Estonia and Finland, from mid-March to mid-April (2012), sharing experiences in angel investing through lectures, discussions and workshops. We met passionate entrepreneurs with exciting startup companies and engaged angels investors in all four countries. The following day, I delivered a four-hour workshop on capital sources for entrepreneurs and pitching angels for fifteen entrepreneurs in the Propel program.

What is a good site or Gmail extension for an angel investor to manage their startup deals?

Gust

When I started my angel investing over a decade ago, there was no such thing as a site to handle the surprisingly-challenging process of keeping track of all the information regarding all the companies with which I was working. Gust News angel investor Gust startup deals

AngelList Syndicates: Why Pooling Resources Is Good for Early Stage Investing

Inc Startups

With 300 syndicates, this will change the way companies get funded. Investors benefit by riding on the coat tails of experienced Angels, who benefit with fast cash. Syndicates have no management fees, so it’s almost a no brainer to invest. for syndicates.

Interview with Bril Flint, angel investor and tech strategist

Austin Startup

mobileTech Tuesday special – A Podcast with Bril Flint, angel investor and technology strategist. A big thanks to AustinStartup.com for encouraging and syndicating this original, mobile-focused content - Steve Guengerich. Bril serves as an early stage investor and technology strategy consultant to two Austin mobile development companies.

Pari Passu or F.U.little guy

Professor VC

This is the feeling you get from watching the venture capitalists talk about the entrepreneurs and other investors in the film. The company either fails and provides little or no return to investors or is a success and returns a multiple to investors.

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.

Leading vs Following

A VC : Venture Capital and Technology

Hunter Walk has a good post up on the coming competition among angels with syndicates to get into deals. Hunter observes: My guess is there are also some angels who were popular when they represented a $25k check but won’t be as sought after if they try to push $300k into a round. A lead investor sets the price and terms of the investment, takes a large part of the round, and usually agrees to represent the entire round on the board. USV is a lead investor.

Pioneer Square Labs – Investing More In Seattle

Feld Thoughts

Geoff worked with Greg at Madrona for a decade and is one of the most prolific and successful angel investors in the Pacific Northwest. PSL was announced today and GeekWire’s conference and there’s an extremely comprehensive post explaining how it works at Top Seattle investors raise $12.5M We’ve made over 60 investments through FG Angels – our AngelList syndicate – and are one of the most prolific investors on that platform.

When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

Sharing these pricing expectations early with potential lead investors fundamentally qualifies your conversations, but it also runs the risk of prematurely losing a potential financing partner, or else it can reduce options to maximize your fundraise outcome.

Where would I go to invest in startups or emerging companies?

Gust

” and the second is “Are you an Accredited Investor by that country’s standards?” This will be changing next year, however, because of a new law called the JOBS Act of 2012 , which establishes a new, limited type of Crowdfunding for small companies and non-Accredited investors. If you want to strike out on your own, though, there are several online platforms that have recently begun to offer selections of curated startups to Accredited investors.

The Silliness Of Recapping Seed Rounds

Feld Thoughts

A company raises $1m of seed money from angels in a convertible note with a $6m cap. The first release is underwhelming, but they iterate aggressively, with feedback and support from some of their angel investors. One of their angel investors, who happens to be a VC firm, decides to invest another $500,000 in the company. As part of this, all of the seed investors get a chance to participate in the round prorata to preserve their ownership percentage.

How to Evaluate Firms for a Seed VC Syndicate

Genuine VC

There are essentially two distinct basic strategies for startup entrepreneurs to raise a seed round of capital: Subscription approach – An entrepreneur sets a structure (usually a convertible note) and recruits individual angel investors who subscribe to the round, all without a term-driving lead investor. On the margin, higher-prestige seed investors attract higher quality Series A investors.

Angel Investing: Know (What Motivates) Thyself

Agile VC

It’s been awhile since we worked together on a daily basis so a lot was just general catch up, but one of the primary reasons for our chat was that this person was starting to become a more active angel investor and was just looking for feedback. I’ve had similar conversations in the last year or so with other folks looking to begin, or ramp up, their activity as angel investors. ” But as an angel one can overweight this factor.

The Top 25 Angel Investors

Inc Startups

Ranking the top angel investors. Now YouNoodle's teamed up with BusinessWeek to use the same vetting process on angel investors, with some surprises. And Hunch confound Chris Dixon, who may not be a top tier influencer, does have the most diverse portfolio, as well as YouNoodle's endorsement as the top investor in tech. The WSJ has full details on the sweet startup, which Arrick plans to expand into Chicago, Miami, and Los Angeles within the next year.

10 Tried-And-True Strategies For Funding New Ventures

Startup Professionals Musings

For example, professional investors put great priority on your previous experience in building a business, and they expect to own a portion of the business equity and control for the funds they do provide. Solicit venture capital investors. Apply to local Angel investor groups.

The Market Size Fallacy for Seed-Stage Startups

View from Seed

I once showed a company to another VC for an investment we were syndicating. This investor loved the team and thought the solution they were building was compelling. But the reality often is that investors don’t pass because of market size.

Crowdfunding for start-ups: A durable trend or a bull market phenomenon?

Information Arbitrage

Angel investing is red hot as is the concept of crowdfunding start up investment. What started out as a way for a curated set of angels to invest in startups posting on the AngelList site has expanded to include the notion of Syndicates , investor groups headed by prominent angels who deploy capital pledged by themselves and others in a manner akin to a GP/LP construct. If Syndicates exist to push more angel dollars into the early stage ecosystem, that is fine.

Venture Deals: Chapter 1: The Players

Ask The VC

While it might seem like there are only two players in the financing dance—the entrepreneur and the venture capitalist—there are often others, including angel investors, lawyers, and mentors. In Chapter 1, we describe and discuss the entrepreneur, venture capitalist, angel investor, syndicate, lawyer, and mentor.

Let Me Count The Ways Entrepreneurs Fund Startups

Startup Professionals Musings

For example, professional investors put great priority on your previous experience in building a business, and they expect to own a portion of the business equity and control for the funds they do provide. Solicit venture capital investors. Apply to local Angel investor groups.

Getting An Outside Lead – The Myth Of Third Party Validation

A VC : Venture Capital and Technology

One of them is that getting “third party validation” by going outside of the current investor syndicate to find a new lead is good for the company and good for the investors. I have come to believe this “wisdom” is nothing more than lack of conviction on the investor’s part. Of course the entrepreneur can say that they don’t want an inside lead and they want to expand the investor base. But even so, smart investors may know.

Angel Bootcamp, The Blog Post: A Primer on Angel Investing

View from Seed

A little under a year ago, we hosted an event called Angel Bootcamp that was a primer for folks thinking about getting into angel investing. He felt like, given some of the opportunities he was seeing, a “primer on angel investing” would be helpful. A Primer on Angel Investing.

11 Business Podcasts for Entrepreneurs

Up and Running

The failed pitches to investors, the difficult conversations with loved ones, and even the negotiations among cofounders are all recorded here as they happened, giving a unique look at one man’s entire experience from concept to company.

Trophy Entrepreneurs Can Land Trophy Investors

Startup Professionals Musings

Bockerstette, Main Street Venture Fund Angel investing in most parts of the country remains a relatively informal and unstructured process. The depressed economy has dampened the angel community’s appetite, making the identification of the trophy investor more important than ever.

HBS Alumni Angels assets for investing in women and minority-led startups

David Teten

In the article, I discuss why we think that smart early-stage investors should target women and diverse entrepreneurs, and why we think HBS Alumni Angels in particular is well positioned to be very successful. Angel networks in general have lots of disadvantages compared with VC funds, but VCAP© has three key advantages: • Bigger reach , because there are more “Partners” than any normal VC fund. More precise matching of investors/board members with companies.

Valuations 101: Scorecard Valuation Methodology

Gust

Individual accredited investors in typical angel deals put personal capital at risk for an equity share of growth-oriented, start-up companies. These angel investors generally invest $25,000 to $100,000 in a round totaling $250,000 to $1,000,000. million and is established by negotiations between the entrepreneur and the angel investors. In the end, such a portfolio might yield the angel investor a total return on investment of 25% per year or more.

Make Your Own Decisions

Feld Thoughts

We describe Foundry Group ‘s behavior as “syndication agnostic.” ” When we make an investment, we are completely agnostic as to whether or not we have a co-investor. We make our own decisions to invest, or not to invest, independent of what other investors are thinking. We aren’t looking for outside validation from other investors of any sort – either positive or negative.

A Visit With the European Startup Community

Gust

The goal was to share our experiences in the realm of angel investing with an array of global audiences, by participating in various lectures, discussions and workshops. In all four countries we met passionate entrepreneurs who were eager to discuss their exciting startups, as well as angel investors looking to support them. We finished our first full day at a dinner with Halo , the Northern Ireland Business Angel Network (Alan Watts).

Old School VC and Entrepreneurship Ideas

Rob Go

It’s an exciting time to be an entrepreneur and investor in this ecosystem. Knowing your investors. . In the early stages, entrepreneurs have historically known who all their investors are. Often early rounds included angel investors, and these usually fell into two categories. Almost all the founders we back have seed and series A syndicates that look like this. Investors that Lead, not Follow.

What Do Angels Want?

ReadWriteStart

In 1998, before they even incorporated, Google founders Sergey Brin and Larry Page were trying to present their concept to early-stage, or "angel" investors, with limited success. Sun Microsystems co-founder Andy Bechtolsheim was one such angel. So what do angels want?