Comments on: How to find angel investors revisited http://www.texasstartupblog.com/2009/05/05/how-to-find-angel-investors-revisited/ Spurring innovation and entrepreneurship. Tue, 16 Mar 2010 23:44:17 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Mr John Bennett http://www.texasstartupblog.com/2009/05/05/how-to-find-angel-investors-revisited/#comment-348715 Mr John Bennett Wed, 10 Jun 2009 08:28:26 +0000 http://www.texasstartupblog.com/?p=2734#comment-348715 Hello, Greetings To You All. My Name is Mr John Bennett and I bring you great news about your financial situation. Are you lacking finance in your life? Lack of Finance is not an excuse for failures in your life but a changes to move or to impact good things in life because that i the only way you can be what you are and what you are made of to fulfill your dreams. So, if you are willing to impact successes in your finance do contact Mr John for more information at jbennett63@ymail.com you will not regret if you did. Thanks. Hello,

Greetings To You All.

My Name is Mr John Bennett and I bring you great news about your financial situation. Are you lacking finance in your life? Lack of Finance is not an excuse for failures in your life but a changes to move or to impact good things in life because that i the only way you can be what you are and what you are made of to fulfill your dreams.
So, if you are willing to impact successes in your finance do contact Mr John for more information at jbennett63@ymail.com you will not regret if you did.

Thanks.

]]> By: Jay_Fraser http://www.texasstartupblog.com/2009/05/05/how-to-find-angel-investors-revisited/#comment-348538 Jay_Fraser Wed, 13 May 2009 20:17:18 +0000 http://www.texasstartupblog.com/?p=2734#comment-348538 I, too, would prefer Type 3 and 4 angels if I could find them. The Type 1 and 2 people have set ideas of what they want, and often are "dabblers" (just my experience) who "judge" potential according to very stringent criteria. My company has already raised $500K from the Type 5's and spent a total of over $2 million (including grants and personal funds) to get to where we are today. I, too, would prefer Type 3 and 4 angels if I could find them. The Type 1 and 2 people have set ideas of what they want, and often are "dabblers" (just my experience) who "judge" potential according to very stringent criteria. My company has already raised $500K from the Type 5's and spent a total of over $2 million (including grants and personal funds) to get to where we are today.

]]> By: Marc Nathan http://www.texasstartupblog.com/2009/05/05/how-to-find-angel-investors-revisited/#comment-348537 Marc Nathan Wed, 13 May 2009 10:26:49 +0000 http://www.texasstartupblog.com/?p=2734#comment-348537 My response the this post: <a href="http://www.startuphouston.com/2009/05/13/not-all-angels-are-created-equal/" target="_blank">http://www.startuphouston.com/2009/05/13/not-all-...</a> On the Texas Startup Blog, Alex Muse writes about the types of angel investors: <a href="http://www.texasstartupblog.com/2009/05/05/how-to-find-angel-investors-revisited/" target="_blank">http://www.texasstartupblog.com/2009/05/05/how-to...</a> Here are his labels for angels: * Type 1: Novice angels with financial objectives * Type 2: Experienced angels with financial objectives * Type 3: Novice angels with subject matter expertise * Type 4: Experienced angels with subject matter expertise * Type 5: Family, friends and colleagues The classifications are exactly right and Alex says that a new venture seeking angels should shoot for types 3 and 4, which is spot on. But what if you can’t find those types or you’re forced to deal with sub-optimal angels? I personally believe that an entrepreneur’s worst funding nightmare is to take money from someone who is an inexperienced angel investor. Friends and family are difficult emotionally because it changes the dynamic of the relationship forever, and financial expectations must be managed separately from personal issues. On the other hand, ‘professional’ angels are much tougher, especially brand new angels. More often than not, new angels are using your deal to determine if being an investor is right for them. They don’t know what questions to ask and fumble around to determine what ‘feels’ right to them - which may or may not have any basis in the real world. They also don’t have any idea of the emotional toll it will take to see a their investment to a successful outcome. These types can burn up a lot of an entrepreneur’s time with multiple meetings and discussions about meaningless projections and untested assumptions. This is often done so that the angel is comforted and reassured that they are making an informed decision. Pulling the trigger and making the commitment to invest separates talkers from closers. A seasoned investor can make a decision on whether to invest or not in the first one hour meeting - of course it will take considerably longer to actually come to terms and a lot can go wrong in the meantime. A seasoned investor will also have a rolodex of other angels and industry contacts that will help push the startup along at an accelerated pace. An amateur investor requires a lot of hand-holding before (and after) a decision is made and that should be factored in when negotiating with angels. My response the this post: http://www.startuphouston.com/2009/05/13/not-all-...

On the Texas Startup Blog, Alex Muse writes about the types of angel investors: http://www.texasstartupblog.com/2009/05/05/how-to...

Here are his labels for angels:

* Type 1: Novice angels with financial objectives
* Type 2: Experienced angels with financial objectives
* Type 3: Novice angels with subject matter expertise
* Type 4: Experienced angels with subject matter expertise
* Type 5: Family, friends and colleagues

The classifications are exactly right and Alex says that a new venture seeking angels should shoot for types 3 and 4, which is spot on. But what if you can’t find those types or you’re forced to deal with sub-optimal angels? I personally believe that an entrepreneur’s worst funding nightmare is to take money from someone who is an inexperienced angel investor. Friends and family are difficult emotionally because it changes the dynamic of the relationship forever, and financial expectations must be managed separately from personal issues. On the other hand, ‘professional’ angels are much tougher, especially brand new angels. More often than not, new angels are using your deal to determine if being an investor is right for them. They don’t know what questions to ask and fumble around to determine what ‘feels’ right to them - which may or may not have any basis in the real world. They also don’t have any idea of the emotional toll it will take to see a their investment to a successful outcome. These types can burn up a lot of an entrepreneur’s time with multiple meetings and discussions about meaningless projections and untested assumptions. This is often done so that the angel is comforted and reassured that they are making an informed decision. Pulling the trigger and making the commitment to invest separates talkers from closers. A seasoned investor can make a decision on whether to invest or not in the first one hour meeting - of course it will take considerably longer to actually come to terms and a lot can go wrong in the meantime. A seasoned investor will also have a rolodex of other angels and industry contacts that will help push the startup along at an accelerated pace. An amateur investor requires a lot of hand-holding before (and after) a decision is made and that should be factored in when negotiating with angels.

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