It's
not the size of the dog in the fight, but the size of the fight
in the dog.
MARK TWAIN,
Writer, Humorist
<>
Angel Investor
Networks -- The Great, and The Really Ugly
Angel investors tend to invest nearby.
It's pure economics -- angel investors from Oregon find it very expensive to
travel to South Carolina to oversee their investment.
Check the web sites of each group carefully
before submitting a proposal. Some are interested in particular
industries, some are more general; some focus on startups, some want
companies to have some kind of track record; some will accept only online
submission, some want a business plan.
Also watch carefully: some angel
investment networks charge a fee for reviewing and/or presenting your
business plan.
TED is an amazing resource for all sorts of
things. I was delighted when I stumbled on this talk by David Rose, an
angel investor, and serial entrepreneur. He is also the founder of Angelsoft
(the platform used by most angel groups to manage entrepreneur applications,
and deal flow). Here's REALLY how to pitch to angel investors!
The groups listed just below are a few of the
general groups that invest nationally. Also be sure the check the
links to your geographical area in links above.
California
and the West. Angel groups from California, Washington, Oregon,
Nevada, Arizona and Idaho are all represented here. This is the home
of Silicon Valley, and the home of Microsoft, as well as hundreds of other
powerful companies. The investors here are accustomed to risk, and
to success.
Canada
angel investors are growing rapidly. As their numbers grow, so
grow the sophistication of their groups. There is now a wide variety
to choose from.
Illinois
and the Mid West includes
Missouri, Illinois, Kentucky, Illinois, Ohio, Wisconsin,
Indiana, Kansas and Mississippi. In recent years this area has put forth
a real effort to attract angel investors.
New
York, New Jersey and New England are strong areas for angel
investment. Hundreds of smaller angel groups operate in these areas,
as well as the larger, more established groups.
Business
plans for angel investors vary
widely in qualifications. No longer are notes on a napkin
acceptable, if indeed they ever were. Now these plans are smooth
multi media presentations that carry a real wallop.
Most IPOs are a real hassle.
This
IPOis created just for smaller companies. Be sure to check it out.
For entrepreneurs who are also minorities, do
check out the
Minority Angel
Investor Network. It's the only one of its kind in the world, AND it
is hugely successful.
The newest wrinkle in the angel investor arena
is the creation of new
angel
funds at hospitals. Along with those at universities and research
organizations, a lot of money is involved.
