Raising money from angels
I recently gave a presentation to the 128 Innovation Capital Group on raising money from angel investors. A copy of the slides is below and the video can be found here.
My key messages:
• Most of the angel market is made up of individuals investing on their own. A small yet important segment of the angel market is angel groups, of which there are over 150 in the US, representing over 7,000 investors
• The trade association for angel groups is the Angel Capital Association. You can find a geographic listing of groups on the site
• New England has seen the rise of many groups in the last 5 years. This is a good trend. Groups have different membership base, styles, investment focus, and processes. Its important to ask and understand how each group works
• There is a good deal of collaboration between groups. In New England, groups get together 3 to 4 times a year to syndicate interesting opportunities.
Practical tips:
1. Manage the process like a sales campaign
2. What should go into a pitch deck (see my earlier blog post)
3. Network extensively; build a pipeline
4. Use an experienced attorney
5. Understand angel group process
6. Convertible notes or equity?
7. Term sheet & valuation comments