Angel investors and venture capital
Many dream of receiving millions of dollars because they have been backed by angel investors or venture capitalists.
This takes an excellent business plan which shows the potential to earn millions of dollars, lots of networking,
and a willingness to give up control of the business to let "the professionals" grow your business.
Angel investors and
venture capitalists don't want to waste their time on small opportunities, so your business must be geared to grow to be a
market leader in a short period of time.
Angel investors and venture capitalists also want a clear exit strategy, so your business needs to be designed so it can
go public or be sold to another company within 2 to 3 years.
Angels and venture capitalists invest in their areas of expertise and
focus on a particular stage of the business (seed capital, early stage, etc.). Networking to find the right fit is essential.
Some corporations can also act as angel investors if your product or service is adding significantly to their business. However many times
they want full control, so they buy your company rather than investing in it.
In 2006, 51,000 ventures received an average of $500,000 in angel investments. Their typical return for angel portfolios was 23% - but they may insist on higher rates to offset potential losses.
Health care received the highest investment (21%); followed by software and biotech (18% each). Retail received 8% and Financial/Business Products and Industrial/Energy each received 6%. Source: Center for Venture Research
Read this BEFORE you start looking for an angel:
Businessfinance.com has this free venture capital workbook
Raising Equity Learning Center
You can also find information and view videos about the equity market, creating a pitch and doing a deal at the
Raising Equity Learning Center.
Click here for more information
Videos and templates from the Wisconsin Angel Network
The Wisconsin Angel Network has developed videos and a presentation template to help people get venture funding.
The National Venture Capital Association provides sample documents for a venture capital agreement. These documents try to fair, eliminating bias or hidden legal traps that might benefit the experienced venture capitalist. You should compare any documents that you have with this "best practices" agreement.
Click here to go to the Model Venture Capital Financing Documents
Tech Coast Angels
The Tech Coast Angels has 300 investor members. They invest in Life Science and BioTech, IT, Services, Retail, Internet, Financial, Software, Media, Consumer Products and Tech startups.
Click here for information about Tech Coast Angels.
Los Angeles Venture Association (LAVA)
Los Angeles Venture Association sponsors breakfasts and monthly meetings to introduce entrepreneurs to potential
investors. It also hosts the Annual Investment Capital Conference. For more information, visit
Visit the Los Angeles Venture Association at http://www.lava.org
Pasadena Angels
Pasadena Angels, Inc., a nonprofit entity, offers early-stage companies the opportunity to benefit from the knowledge of more than 100 experienced entrepreneurs,
senior corporate executives, and skilled professionals from a variety of industries and venture capital affiliates.
For more information, visit
Visit the Pasadena Angels at http://pasadenaangels.com/about/.
DFJ Frontier
With offices in Sacramento and Santa Barbara, DFJ Frontier invests in seed and early stage technology
companies on the West Coast. DFJ Network is the most active venture capital organization anywhere.
With offices in over 30 cities and around the globe, its network has over $5 billion under management
to fund extraordinary entrepreneurs. Click here for more information about DFJ Frontier investors.
Golden Seeds
Angel investors who are seeking woman-led businesses. They have offices in San Francisco.
Click here for more information.
The following websites have information regarding angel investors and venture capitalist firms.
Angel Investors
Venture Capital Groups
Books
The following books can help you understand how to approach angel investors or
venture capitalists.
