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13 Replies Last post: May 31, 2008 2:32 PM by DomainDiva

Venture Capital and Angel Investment: How to acquire.

Dec 28, 2007 11:53 PM

sirebral 17 posts since
Dec 28, 2007

I am really interesting in Venture Capitalism and Angel Investments and I would like to know if anyone on the boards has any information on how to find these resources.

I have a small Sole-Proprietorship that I started in May this year. (www.madmathlabs.com) I have some really good ideas for the gaming market. I only want help with one idea since it is in such high demand.

Tags: business_start_up, social_network, starting_a_new_business, funding, consulting, startup Report as inappropriate

slavaret 78 posts since
Oct 26, 2007

1. Re: Venture Capital and Angel Investment: How to acquire. Dec 29, 2007 1:19 AM

I don't know where you are located but I used to belong to this group in San Diego:

http://www.sdvg.org/

You may want to join an equivalent in your area. The monthly meetings are great for networking and learning how VC operates.

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DomainDiva 1,488 posts since
Oct 10, 2007

2. Re: Venture Capital and Angel Investment: How to acquire. Dec 29, 2007 10:15 AM

You can use Google to find the VC firms, just put in venture capital and watch the results. On a more 'realistic' note,,,the VC game is a brutal one. Be sure to only give them an Executive Summary when first contacting them, NOT a business plan. You will also have to make up financial projections that don't mean anything just to give them an idea of what you may be worth. Then there are the VC that only do business in a certain area...Then there is the Gathering of Angels...(google that as well) that will charge YOU 2500 to speak in front of them.

I made the VC rounds for three years before being funded by a friend....talk to family and friends first.....you have no idea of the brutality of the VC mess. There will be VC law firms that will want lots of money up front (10-40 thousand in some cases) just to get you in front of a VC...

There are grants. Creative Fusion for 300.00 will provide you with a full package and a mentor to walk you through the process.

On the other hand...if you are really serious anout your ideas...contact one of the gaming companies, get a lawyer and discuss development and licensing. OR start using your own money, whatever is left over after bills, and believe me a lot of times its not much but it is something.

Good luck...

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LUCKIEST 7,372 posts since
Aug 6, 2007

3. Re: Venture Capital and Angel Investment: How to acquire. Dec 29, 2007 2:46 PM

in response to: DomainDiva

DomainDiva, Great answer
Wishing you a very Happy New Year.

Have a blast in 2008.
LUCKIEST

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DomainDiva 1,488 posts since
Oct 10, 2007

4. Re: Venture Capital and Angel Investment: How to acquire. Dec 29, 2007 2:48 PM

in response to: LUCKIEST

2008 will henceforth be known as "The Year Of AviaSphere". We are SO going to change the world!!!!

Thanks for the encouragement!

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sirebral 17 posts since
Dec 28, 2007

5. Re: Venture Capital and Angel Investment: How to acquire. Dec 30, 2007 2:14 PM

in response to: DomainDiva

Thanks Domain Diva. Usually I am the one who explains how easy it is to find things over the internet. This time you win my Correct Answer award.

The information you provided should be enough for me to start a small information database of organizations that I am interested in. Thanks for helping me get my foot in the door.

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DomainDiva 1,488 posts since
Oct 10, 2007

6. Re: Venture Capital and Angel Investment: How to acquire. Dec 30, 2007 4:31 PM

in response to: sirebral

OH MY!!! Well you are more than welcome! A database of possible investors...hmmm now theres something that may be worth some money..say of you were to categorize them by geographic area, phases of investment, crtieria etc....

Don't mind me...its just in my genes to think of ways to make money from nothing...good luck on your new venture....please keep the group posted!

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LUCKIEST 7,372 posts since
Aug 6, 2007

7. Re: Venture Capital and Angel Investment: How to acquire. Dec 30, 2007 4:36 PM

in response to: DomainDiva

DD, When are you and " AviaSphere" going public??
LUCKIEST

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DomainDiva 1,488 posts since
Oct 10, 2007

8. Re: Venture Capital and Angel Investment: How to acquire. Dec 30, 2007 4:44 PM

in response to: LUCKIEST

We will have ouor first product(s) ready for testing March 15. A small airline has agreed to test for us for data input and accuracy. The business rules agent will also attach to the remaining times on each item so that a company can build in their problem solving processes for maintenance itesm...even add cost...suppliers etc. Phase three the visual online document storage will be ready to attach in August or September and then testing will start for approx 30 days. The people that I have lined up to test are super super sharp and will find problems immediately. No testing will be done in house. This product is for customers so customers should participate in the testing. How many crummy applications are released and then get slammed because of proplems?

BTW we are not a relational database, and we do not use a search engine to locate documents...its all done visually.

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PeoplePawn 28 posts since
May 28, 2008

9. Re: Venture Capital and Angel Investment: How to acquire. May 29, 2008 1:01 PM

Big difference between "Angel" and "VC" audiences. I think I'll write on this one a little later. I'm going through a pre-revenue Series A Preferred round at this current moment with my third start-up www.PeoplePawn.com, and am focusing on angel groups only. Generally speaking, VC's look for companies within a specific industry where they focus on proven concepts with revenue, which can scale fast and require a minimum of $5M with a potential 10X return over a 3 to 5 year period.

I am based in Seattle I've presented at a number of the larger angel groups, such as:
www.KeiretsuForum.com
www.ZinoSociety.com
www.TacomaAngelNetwork.com
www.AlloanceOfAngels.com
www.NWEN.org
www.PugetSoundVentureClub.com

Caution: All of these listed angel groups charge at some level. Some for application, others for application and presentation to members. Most in this area receive 60 applications per month. Seattle is a hot bed for start-up's. From the total monthly application pool, all angel groups select 4 presenting companies per month for their angel membership to view over a breakfast or lunch meeting forum. Most presenting companies have between 7-10 minutes to present their sideshows with 2-5 minutes of Q&A afterwards. So as an entrepreneur you really need to be professionally prepared in order to both be selected for presentation as well as present. This is not a experience for the unprepared or weak at heart! The fee's to present generally range from $500 to $1500. Some groups require you to present at more than one membership group.....so this process can get really expensive! With no guarantee for interest from the angel audience.+

I see it as the cost of being funded. If you want your business concept to be taken seriously, then serious investors expect you to present the opportunity to them in a professional and thoroughly prepared format. At this stage of the game both "the horse" and "the jockey" count in the eyes of the angel.

The following is a list of "mush haves" before you apply to a sophisticated and structured angel group, otherwise you will not pass the application process:

*Professional PowerPoint Presentation
*Business Plan
*Executive Summary
*Financial's - minimum 3 years and no more than 6 years
*Product sample at minimum
*Proof of concept or traction
*The ability to answer any question about your business in the Q&A session

The above will get you through the application process and presentation. Once presented, with the interest and feedback you receive you can build on these elements.

Be aware: These groups tend to have service providers as members. You'll have lots of people offering you help with building your financial's, protecting your IP, supporting your management team, etc.

I'll be happy to answer any other questions that you have on this subject from a perspective of actual experience.

Regards,

Patrick Kane - Patrick@PeoplePawn.com
www.PeoplePawn.com

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Adducent 285 posts since
May 22, 2008

10. Re: Venture Capital and Angel Investment: How to acquire. May 30, 2008 4:20 PM

Some Venture Capitalists could almost be termed "venture cannibalists" ... so sometimes even if you attract VC funding it ends up being a less than pleasant experience. There are hundreds, if not thousands, of VC firms and Angel Investors and groups out there. Just type in either phrase into Google and you will find plenty of sites to look at. You would want to find the one that seems closest to have interest or a track record of companies similar to your. You will need to have a very professional business plan when you approach them. If its one you put together your self; have an experienced professional look it over before you present to any investor prospects or funding sources.

Keep in mind that VC's fund only a small percentage of the deals they see. You may want to give some thoughts to looking at alternatives to VC funding. There are other ways out there that often are better for you than venture capital.

Dennis Lowery
Adducent, Inc.

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DomainDiva 1,488 posts since
Oct 10, 2007

11. Re: Venture Capital and Angel Investment: How to acquire. May 30, 2008 9:01 PM

in response to: PeoplePawn

I was rejected by one group because I would not use their attorneys, accountants and technical people. I was extremely angry when they presented their 'requests' and walked out of the meeting, the last thing I heard was "You will never get to market!" They actually wanted to dismantle the team and the company structure to fund my idea.

We are in alpha test right now. We ARE going to market..our way not theirs. Vulture capitalists are not fun.

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TJMorehead 98 posts since
Mar 16, 2008

12. Re: Venture Capital and Angel Investment: How to acquire. May 31, 2008 1:04 AM

in response to: DomainDiva

Hello DomainDiva,

Look at your site, found it quite interesting. I never have given the aircraft industry much thought. Do you have an inventory of aircraft for sale? Please advise.

TJMorehead

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DomainDiva 1,488 posts since
Oct 10, 2007

13. Re: Venture Capital and Angel Investment: How to acquire. May 31, 2008 2:32 PM

in response to: TJMorehead

We do not broker aircraft. We are developing a web based, user managed solution for the retention and management of aircraft maintenance records for leasing companies.

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