European enthusiasm for angel investing has been growing over the past few years. What's the potential for the future?
More growth, according to Brigitte Baumann, President of EBAN. Part of this growth comes from younger angels who may be working the corporate track, but are attracted to eventually become an entrepreneur. But do these younger angels qualify? In the US we use the SEC's definition of an Accredited Investor, but there's nothing like that in Europe.
Are these angel groups robbing the cradle? And, besides money, what can these younger angels bring to the table? You'll be surprised.
Mic shares the stories, the process, the syndication strategies and his refreshing attitudes about due diligence as we discuss getting deals done in New England.
Scientists and Engineers wanna be Entrepreneurs, too
Last night I had the honor of speaking at the Entrepreneurship Course for Scientists and Engineers at the Henry Samueli School of Engineering at UCIrvine. It was my 3rd year in a row presenting to this class. My friend Goran Matijasevic instructs and brings in a speaker a week to address the students. I can relate to this audience and we all shared a few laughs.
Last night's topic: An Angel in LA, a blend of my entrepreneurial journey mixed with dance photography and stories of the Tech Coast Angels.
Check out the schedule; all the guest lectures are free and open to the public.
Got the email this morning: I'm invited to EBAN's 10th Annual Congress April 15-16 in Istanbul to moderate a panel, "One year after: angels reflect on their last investment year", where last year's Business Angels of the Year will discuss their most recent deals. Make plans now to join me.
How did angel investing get started in San Diego? My guest Vern Yates shares the story.
I knew we were going to hit it off when I spotted the elaborate model trains on his patio. I can't believe my eyes as I reach for the camera.
As we sit down, I know I'm in for a look back at the history of angel investing in San Diego. Vern's been there.
How do you succeed in angel angel investing? Start 13 years ago, in the good ole days when Vern describes returns of 40X and 150X. If you do that you'll be playing with house money for the rest of your career.
We get started with a few topics from the recent Tech Coast Angels' off site strategic planning meeting where no issue was off the table.
Thankfully I have better things to do on a Friday night, so through the miracle of TiVo and a rainy Martin Luther King Day, I waded through Episode 106. The popular appeal is easy to see, especially in this episode which was food oriented. I don't know many angel investors interested in food start-ups, the margins are poor.
What struck me was the small amounts the entrepreneurs were asking. What can even the best of them accomplish with $40, 50 or even $150K? Based on the 30+ early stage investments I've made I can tell you: very little. Which means they'll be back for more money, which will be more expensive, if they can get it, because the story won't be so glamorous the next time.
I was also surprised at how several of the investor bids were grabs for most or all of the equity. They'd be shooting themselves in the foot if the entrepreneur accepted these greedy terms, because without sufficient incentive for the entrepreneur, all that hard work without a substantial piece of the upside would eventually cause the entrepreneur's spouse to convince them to drop the whole thing. I'm surprised the investors made these brazen grabs for the whole deal; maybe it's just to add drama for the TV audience. No one at Tech Coast Angels would make such an offer.
It reminds me of the advice Palomar Ventures' Randy Lunn offered once, "never take advantage of an entrepreneur". Not as exciting on TV perhaps, but words to live by if you're a angel investor.
"Moneyapolis" it used to be called, does the term still apply today?
St Paul-based RAIN Source Capital operates 23 funds across Montana, Idaho, Iowa, South Dakota, North Dakota, Washington and Oregon; that's a lot of territory. They're funding 15-20 deals a year out of the 1,000 applications they receive. This is some operation! Even so, CFO Peter Birkeland points out "deal flow can be lumpy".
Dan Rosen of the Alliance of Angels in Seattle squares off against Vancouver's Basil Peters (no relation) in a lively discussion of term sheets and how these two former venture capitalists, now angel investors, have evolved their thinking on the critical components in term sheets.
"Incremental innovation," that's what JumpStart's Ray Leach says was happening in Northeast Ohio before his fund kicked in. JumpStart is funding seed deals then working with angel groups and venture capital for subsequent rounds.
What's their typical seed investment? $340K That's substantial and it's only one of the surprises Ray describes about funding Ohio companies.
It's timely and trendy: clean, green and energy, all very compelling markets for investment and that's what Sail Venture Partners' Mike Hammons describes as the firm's focus.
Dan Rosen of the 
