The Angel Capital Association's Response to Current Events

Angel Capital Association

The Angel Capital Association stands for social justice, equal opportunity, and social mobility through the power of entrepreneurship. Black CEOs represent a low single digit percentage of angel backed portfolio companies and an even smaller percentage of funding. Forward, we are committing ourselves to building racial diversity in both the angel investing community and the entrepreneurs we support.

Investments of time and money are critical for startups’ success

Innovation 2 Enterprise

In no area is the “why” discussion more important than when we are advising entrepreneurs on raising capital. High-growth startups have two basic sources of investment capitalangel investors (individuals, groups, or funds) and institutional investors like i2E. Angels invest their own money and are in the business of high risk/high return. I like to refer to Angels as “big game hunters.”. By Scott Meacham.

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Seraf Co-Founder Appointed to SEC’s Investor Advisory Committee

The Seraf Compass

Christopher serves as the Chair Emeritus of the Angel Capital Association and Senior Managing Director of Launchpad Venture Group, and wholeheartedly understands the complexities around investing in early stage companies We are proud to share that Seraf Co-founder Christopher Mirabile was recently appointed to the SEC's Investor Advisory Committee.

New Look, Continued Commitment

Angel Capital Association

The Angel Capital Association’s top priority is to service our members by providing resources to help with making smart investments and improving returns. By: Emily Angold, ACA Marketing Manager ACA emails have a new look! Whether it is an upcoming event or a new piece of legislation, ACA wants to help our members easily identify the benefits that are most applicable to each individual.

What happens when you take 12 investors to Silicon Valley?

Startup Catalyst

In November 2017 we delivered our first Investor Mission, heading to San Francisco for an intensive week meeting with angels, VCs, corporate venture programs, accelerators, startups, pitch events, and dinners. The mission participants were a mix of angel investors, VCs, and an accountant and lawyer (who manage investment deals) from Queensland and New South Wales. The program kicked off with a full one-day angel investor education program delivered by Angel Labs.

Selecting the Top Angel Deals in the Northeast… on Google Sheets

Paul G. Silva

I am told that the angel groups of the Northeast have one of the best systems for syndicating deals in the country. The process is efficient and fair and might be helpful to other angel groups, or to other groups who see a lot of applications from people seeking money (accelerators, foundations, government agencies, etc). Make it easy – Most angel investors do this as a hobby, so you need to make it easy for them. Angels have a set deadline to cast their votes.

Case Study: The Dan River Region Ecosystem Development

Ecosystem Builder Hub

Eva Doss, President and CEO at The Launch Place, elaborated, “We had multiple organizations in the region that were providing specific services to entrepreneurs and small businesses: business counseling, seminars, workshops, investment capital, pitch competitions, networking events, etc.

New Board Members Elected at Annual Member Meeting During ACA 2020 – The Summit of Angel Investing

Angel Capital Association

By: Emily Angold, ACA Marketing Manager Three new board members were elected at the ACA Annual Members’ Meeting during ACA 2020 – The Summit of Angel Investing held virtually May 12-14, 2020. The Board of Directors focuses on supporting the success of angel investors through industry voice, professional development and public policy advocacy while maintaining the mission and values of the Angel Capital Association. Linda Smith , Sierra Angels, former ACA Board Chair.

Is there an incubator for aspiring Angel Investors or VCs?

Gust

No, but there are several sets of courses on angel investing that can provide a good base from which to start. The most comprehensive and best known is the Power of Angel Investing seminar series developed by the Angel Resource Institute (formerly known as the Angel Capital Education Foundation, and prior to that part of the Angel Capital Association). A third is the in-house course developed for its members by the Golden Seeds angel network.

Preparing to Start a Company

This is going to be BIG.

If you’re going that route—here are a couple of things I would suggest: Have at least six months of personal expenses in the bank —and that’s only if you know you can at least get some angel capital based around your connections to investors, friends, family, etc. It’s that time of year again—the season of people quitting their jobs soon to start a company.

Five Ways Angel Investing Gave Me Wings

Angel Capital Association

Marry that experience with a desire to grow my personal wealth while investing in entrepreneurial businesses, particularly those that are women-owned and women-led, and you have the wind beneath angel investing wings. Angel investors provide capital for business start-ups, usually in exchange for ownership equity. While venture funding and angel funding are on the rise, only seven percent of venture capital funding goes to women-owned businesses.

ACA Chair Emeritus Christopher Mirabile Appointed to SEC?s Investor Advisory Committee

Angel Capital Association

I am very pleased to have the opportunity to represent the Angel Capital Association and the voice of all early stage investors as part of the vital work of the Investor Advisory Committee. Christopher Mirabile is the Chair Emeritus and Public Policy Committee Chair Emeritus of the Angel Capital Association and the co-founder of portfolio management tool www.seraf-investor.com. Congratulations to Christopher on behalf of ACA, angel investors and the start-up ecosystem!

How Will Beneficial Ownership and Blue Sky Fees Legislation Impact the Startup Ecosystem?

Angel Capital Association

By: Pat Gouhin, Chief Executive Officer One of the fundamentals pillars of the Angel Capital Association is protecting and advocating for the rights of angel investors and the entrepreneurs they support.

"Money is Local, Impact is Global" for Angel Investing

Onevest

By Michael "Luni" Libes In the traditional world of early stage, Angel and VC investing, money is local. Studies show that over 80% of funding at Angel groups and Series A VCs goes to businesses in the same city/region as the funders. Instead, we see groups like the Element8 Angels in Seattle funding deals across the country, and syndicating deals with other Angel groups in other cities.

Alicia Robb Magnified the Movement to Drive Impact, Diversity, and Inclusion in Early-Stage Investing

Angel Capital Association

By: Sarah Dickey, ACA Membership Director Groundbreaking economist, author, investor, and entrepreneur is honored with the Angel Capital Association’s Hans Severiens Award While performing the research that culminated in her book, The Next Wave: Financing and Investing Strategies for Growth-Oriented Women Entrepreneurs , Alicia Robb, Ph.D., They do not know other angel investors and are not part of investor networks. Contribution to the knowledge base of angel investing.

Startup Investing: The New Trend in Alternative Assets

Onevest

By definition Angel Investors are individual investors. This is something that we have experience at 1000 Angels , the private investor network that connects startups with investors. Wikipedia notes that “in 1996 there were about 10 angel groups in the United States. In a report on startup investing and “How the Rich Invest” Forbes notes that the Angel Capital Association counted more than 330 active angel groups in North America as of 2013.

What tools can I use to manage relationships with investors?

Gust

It’s the official collaboration tool of the Angel Capital Association (and the equivalent national angel investor federations in 20 other countries.) It’s also used by over 300 venture capital funds. Gust.com is the most widely used tool platform for both sides, with hundreds of thousands of companies and tens of thousands of investors using it to track and manage their relations with the other.

How Much Due Diligence Does An Angel Really Need To Do?

Paul G. Silva

Marianne Hudson, executive director of the Angel Capital Association (the trade association for angel investors in the US) wrote an article on this topic. One of the biggest debates in the angel industry is how much due diligence investors should do before they invest. From “rank and file” angels to rock star investors like Ron Conway or Mark Cuban , opinions differ vastly from literally doing none to conducting formal processes that take months.

Accredited Investor Definition Expanded to Increase Access to Investment Opportunities

Angel Capital Association

For the first time, individuals will be permitted to participate in our private capital markets not only based on their income or net worth, but also based on established, clear measures of financial sophistication. ACA has supported the SEC’s incremental expansion of the accredited investor pool and other proposals to expand startup access to angel capital.

How did she do it? A Q&A with Rita Hansen, Chief Executive Officer & Co-Founder of Onboard Dynamics

Angel Capital Association

Each year, the Luis Villalobos Award recognizes outstanding ingenuity, creativity and innovation among startups backed by Angel Capital Association members. RH: It is a challenge to find capital for a hardware energy. Also, don’t overlook the power of angel networks.

A university’s role in an emerging startup community and other conversations

Startup Catalyst

You then need your risk capital and we’re seeing increasing amounts of risk capital available in Queensland. There are still some gaps in terms of capital but that can be worked on. Stuff at the Capital? I’m Rosie Odsey and I interviewed Rowena Barrett from QUT in late August 2018. A quick note: My words are in italics. Rowena’s are in regular font. Headings, hyperlinks, and images have been added for effect but the words are ours. Meet Professor Rowena Barrett.

Securities and Exchange Commission Seeks Input from ACA Members

Angel Capital Association

By: Emily Angold, ACA Marketing Manager The Angel Capital Association was honored to have Martha Miller of the Office of the Advocate for Small Business Capital Formation (U.S. Securities and Exchange Commission) participate in ACA 2020 – The Summit of Angel Investing. Also, if you haven’t already, take a skim through our annual report , which includes a wealth of data on small business capital raising, including angel investing.

Resources for Angels Considering Deep Tech

propel(x)

There are several reasons angel investors may consider adding deep technology to their investment portfolio. The Angel Capital Association’s Knowledge Center : Packed with advice for angels just starting out, as well as for angel group leaders, the ACA has compiled a library of instructional videos and webinars to aide your investment journey. Be sure to check out their guide to different approaches to angel investing.

MedRhythms Uses the Universal Language of Music to Bring Hope, Healing to Mobility Impaired Patients

Angel Capital Association

By Sarah Dickey, ACA Membership Director Young company awarded prestigious Luis Villalobos Award, Life Sciences category, from Angel Capital Association “Where words fail, music speaks.” This week, MedRhythms was awarded the prestigious Luis Villalobos Award for Life Sciences, which recognizes the most ingenious and innovative idea recently financed by members of the Angel Capital Association (ACA.)

Don’t Ask Investors to Change. Change Policy.

Angel Capital Association

For the first time in history, investors are being forced to recognize and reflect on the lack of diversity within their portfolios and pipelines — and from Silicon Valley to New York City, the startup capital ecosystem is experiencing a reckoning. Much of this push for change has been focused on institutional investors and venture capital firms, many of whom have responded with a variety of statements, promises, and initiatives. Angel investors need to be held accountable.

Onboard Dynamics Is Leading the Transition to Next Generation Transportation Fuels, Reducing Emissions, and Driving Down Energy Costs

Angel Capital Association

By: Sarah Dickey, ACA Membership Director Cutting-edge clean energy company wins Luis Villalobos Award, Technology category, from Angel Capital Association The United States has abundant access to domestic natural gas, but we have struggled for decades to find scalable, economic ways to leverage natural gas as a transportation fuel, despite its environmental and efficiency benefits.

ACA Shares Angel Perspective as the SEC Proposes Ways to Increase Capital for Founders and Investors

Angel Capital Association

By: Pat Gouhin, Chief Executive Officer The Angel Capital Association and the broader angel investor community were represented during the recent committee meeting with the Securities and Exchange Commission to discuss vital issues that impact capital funding. The angel perspective was represented by ACA member and former Chair, Catherine Mott , BlueTree Allied Angels, who sits on the advisory committee.

State-funded program managed by i2E boosts Oklahoma innovation

Innovation 2 Enterprise

My mantra of investing, as any regular reader of this column knows, is capital begets capital. That’s why Oklahoma’s unique, pre-seed capital fund, Technology Business Finance Program (TBFP), is so critical to Oklahoma’s innovation economy. TBFP deploys state funding to provide equity-free capital for startups at such an early stage that there are virtually no other sources of capital available. By Scott Meacham.

Think ahead when raising your early investments

Berkonomics

Some businesses just can’t fit within the angel capital or friends and family model for raising funds. Sooner or later you may need to seek venture capital and accommodate the needs of the venture community in negotiating the terms of an investment. Most VC’s today are becoming enlightened (as are organized angels), correctly forcing many decisions that might have been dictated by investment documents instead to the corporate board to decide.

Early stage CEOs: time to pull back or push ahead?

Angel Capital Association

By: Pat LaPointe, Frontier Angels After my last post , quite a few people asked if I was suggesting that ALL early stage companies should be pulling back in this uncertain time. There is less money in the angel capital world today than there was a month ago. And they’ll be much more sensitized to each company’s potential need for more capital to get to exit, wondering if that capital will be available when needed.

A First Timers Guide to Down Rounds

Angel Capital Association

By: Dror Futter, Legal and Business Adviser to Startups, Venture Capital Firms and Technology Companies If your venture is confronting a down round, you should not wear it as a badge of shame. More importantly, if you are doing a down round, it still means you were able to raise capital. Even in normal times, few ventures make an uninterrupted march up and to the right on the valuation curve.

How to Kick Start Your Community’s Startup Scene

Both Sides of the Table

Cincinnati, like many startup communities in the US over the past 5 years, has revitalized important regions in its urban core, created accelerators, built co-working facilities, pooled together angel capital, attracted VCs, involved educational institutions and solicited the help of important corporations in a more cohesive ecosystem. Changes in the Software World & in Venture Capital. Angels & Recycled Capital. Venture Capital.

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. Benefits of joining a group include pooling deal flow, capital, domain expertise, and investing experience. The typical US angel group will receive a dozen or more funding applications from startups each month; the most active ones, such as New York Angels will receive over 100.

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 (the company I founded) is the online platform used by over 45,000 accredited angel investors and VCs, from over 1,000 angel groups and venture funds, in 74 countries, to manage their startup deals. Gust News angel investor Gust startup deals

After 20 years: Updating the Berkus Method of valuation

Berkonomics

Originally created in the mid 1990’s to help with the imprecise problem of how to value early stage companies, especially those in technology, I developed what soon became known as “The Berkus Method” when published in the popular book, “Winning Angels” by Harvard’s Amis and Stevenson with my permission in 2001. Well, it had to happen.

Should every startup get funded?

This is going to be BIG.

Getting key strategy advice early on, or getting introduced to a new market can make or break a company in ways that no amount of angel capital can help. That’s what makes venture capital such a risky investment. Help doesn’t necessarily mean an angel round sized check. Tags: Venture Capital & Technology First off, let me be clear that the opinions expressed here are solely my own and not that of my employer, or anyone else.

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 (the company I founded) is the online platform used by over 45,000 accredited angel investors and VCs, from over 1,000 angel groups and venture funds, in 74 countries, to manage their startup deals. Gust News angel investor Gust startup deals