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    13 Replies Latest reply on May 31, 2008 2:32 PM by DomainDiva

    Venture Capital and Angel Investment: How to acquire.

    sirebral Wayfarer

      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.
        • Re: Venture Capital and Angel Investment: How to acquire.
          slavaret Adventurer
          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.
          1 of 1 people found this helpful
          • Re: Venture Capital and Angel Investment: How to acquire.
            DomainDiva Ranger

            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...
            • Re: Venture Capital and Angel Investment: How to acquire.
              PeoplePawn Wayfarer

              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
              • Re: Venture Capital and Angel Investment: How to acquire.
                Tracker
                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.