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Q: angel investor networks ( Answered,   1 Comment )
Question  
Subject: angel investor networks
Category: Business and Money > Finance
Asked by: holguinero-ga
List Price: $50.00
Posted: 11 Dec 2003 08:25 PST
Expires: 10 Jan 2004 08:25 PST
Question ID: 286029
tell me everything you can discover about angel investor networks for
the money i offer. thanks.  start off with an executive summary, then
expand on it. as long and detailed as possible.


here are links to angel investor networks, like i'm thinking of forming:
The first one on the list is pretty close to what I have in mind:

http://www.angelsforum.com/aboutus_overview.html



www.gatheringofangels.com/

www.allianceofangels.com/membership_info.asp 

http://www.arizonaangels.com/

http://www.edesertangels.com/about.asp
http://www.tignc.com/about.html
http://www.walnutventures.com/
http://www.techvalleyangels.com/faqinvestors.html

Request for Question Clarification by leader-ga on 11 Dec 2003 20:28 PST
Hello holguinero-ga:

I have started working on your question. I will try to post my answer
as soon as it is complete.

Thanks.

Clarification of Question by holguinero-ga on 12 Dec 2003 04:51 PST
ok
Answer  
Subject: Re: angel investor networks
Answered By: leader-ga on 12 Dec 2003 18:33 PST
 
Hello holguinero-ga:

It was a pleasure to answer your question. I am providing you a
research report from whatever search I have conducted. Please review
and advise me if that is what you need.

Following is the report:

WHO ARE ANGEL INVESTORS?

Angel investors usually invest in very young businesses that seem to
have the potential to grow. In return the angel investors get equity.
The angel investors differ from other types of investors such as
Venture Capital in two ways. First, they opt to invest in risky
businesses and secondly they do not invest a huge amount, like venture
capital firms. Angel investors try to limit their risks by forming
Angel groups so that they can work with other like minded investors
and limit their chances of failure by providing a joint funding to the
entrepreneurs. Typically, an Angel Investor is the best source of
funding for a young business, if they are not ready to take their case
to the venture capital firms.

http://www.inc.com/articles/2000/12/21310.html
FROM
http://www.inc.com/guides/finance/24011.html
___________________________________________________________________________

A TYPICAL ANGEL INVESTOR IN USA

Prefers to invest within a limited geographical area 
Typically well educated 
Tends to invest in a group 
Range of investment: $10,000 - $1,000,000 
Average investment - $10,000 - $250,000 
Makes one investment every two years.?

It was also found that the investors in this specified group look
towards a return of 35 percent on their investment. Angle group is
typically renowned for their risk taking nature as the survey further
showed that almost 33 percent of the companies who presented their
business plans received funding form the angel investors. Furthermore,
angel investors have funded anywhere from $2 to $5 Million per year
and overall $9.5 Million since its inception.

http://www.nextwavestocks.com/angeldirectory.html

Well Known Angel Investors

Angel Investor News
http://www.angel-investor-news.com/angelprofiles3.htm

This link provides a brief profile of the angle investors who give
tips on successful investing.

More on profile of an angle investor:

From Imakenews.com
http://www.imakenews.com/techyvent/e_article000121188.cfm

From Arkansas Small Business Development Center
http://asbdc.ualr.edu/bizfacts/503.asp
___________________________________________________________________________

WHERE ARE ANGEL INVESTORS?

Angel investors form a group that meets formally or informally at the
place of meeting. These groups discuss the new business plans that are
offered by the potential businesses and take a decision to invest.
Angel investors may operate on a slightly different routine. Some of
these investors get information about a business from their fellow
partners, others seek potential candidates by asking their business
contacts but the most likely way is to develop a website and let the
businesses present their offerings.
___________________________________________________________________________

WHAT ANGEL INVESTOR REQUIRE FROM AN ENTREPRENUER?

Some of the angel investor groups charge a fee to present their
business plans while others even charge a fee to apply for a
consideration. Usually the angle investor group limits their
operations geographically so that they may seek more clients by
contacting the local businessmen and other contacts. The amount of
funding that any of the clients may get varies from angle group to
group. Different groups might have different areas of interest where
they will want to invest. For a comparison of various angle groups and
what are their areas of operations and requirement, please refer to
the following link:

http://www.inc.com/articles/2001/09/23461.html
___________________________________________________________________________

GROWTH 

?Angel Investors? refer to those individuals who back emerging
entrepreneur ventures. These ventures are mostly risky and are often
the only source of capital outside the major financial institutions.
Recently, there has been a spectacular growth in Angel investing.
According to a survey carried out by Angel Advisor Angle Network
Activity Survey, angel investors group funded 236 % more companies in
2000 over 1996 which reflects a growth rate of 35 % in an otherwise
struggling broader capital markets. The survey also highlighted the
fact that a typical start-up company, on average, receives around
$350,000.

?It is estimated that one-seventh of the 300,000 + start/early growth
firms in the US receive funding from angel investors. This translates
into over $20 billion of investment over approximately 50,000 deals
each year.

This private investment group exceeds venture capital sources which
are estimated at $5 - $7 billion spread over 1,000 venture investments
each year.

Source: http://www.businessfinance.com/angel-investors.htm

http://www.nextwavestocks.com/angeldirectory.html
___________________________________________________________________________

CURRENT TRENDS IN ANGEL INVESTING

It is reported that the Angel Investors have traditionally preferred
technology start-up companies since it has the potential for higher
returns. Also, Angel Investors seek a business that will give the
start-up a prominent market share or will likely dominate the market
in the future. Usually, Angel Investors rely on their experience and
like to invest in a start-up that is run by a successful manager or a
person who has shown great market understanding in the past.

Some of the experts in this industry caution that more and more Angel
Investor networks are becoming just like venture capital firms where
they have strict criteria for the start-ups and ask for some kind of
stake in the business. Therefore, the same experts caution that any
individual who is looking for the Angle Investment should be wary of
such networks. On the other hand, experts recommend the angel investor
that their immediate contacts might be the best source of information
on a new entity seeking an investment.
___________________________________________________________________________

CATEGORIES OF ANGEL INVESTORS

Experts have categorized Angles into the following five categories:

1. Corporate: usually seasoned but displaced executives looking for
ways to channel their experience into new ventures;
2. Entrepreneurs, who are often successful in at least one venture and
hope to succeed elsewhere;
3. Enthusiasts, who are typically over 65 years of age and seek to
contribute to many relatively small ventures using their personal
wealth;
4. Micromanagers: Successful businesspeople who might attempt to gain
too much control over the internal affairs of the ventures in which
they invest;
5. Professionals in non-investment fields who desire to combine their
professional background with an entrepreneur's start-up idea (for
example, a physician who seeks an investment in a bio-technology
start-up).

Source: http://www.celcee.edu/publications/digest/99Dig-6.html
___________________________________________________________________________

ANGEL INVESTOR NETWORKS

Database of locating Angel Investor Networks
http://www.businessfinance.com/angel-search-app.asp

The database locates angel investor networks by Zip code, state,
capital and investment area.

Some well known regional Angel Networks
http://www.capital-connection.com/networksangels.html

Capital Connection provides links to regional networks in the United States.
___________________________________________________________________________

LOCATE ENTREPRENUERS

ACE-Net
http://acenet.csusb.edu/whatis.html

It is a source for networking among the angel investors and the
potential entrepreneurs. The website helps angel investors to locate
potential start-ups to invest through its internet database.
___________________________________________________________________________

MATCHING ANGELS WITH ENTREPRENUERS

NYNMA
http://angel.nynma.org

?NYNMA, a membership association founded in 1994, brings together
emerging technology companies, enterprises and funders for economic
growth through the application of technology to business.?

Enterprise Angels
http://www.enterpriseangels.com

It is a website devoted to bridging the gap between investors and
start-up companies by helping them locate each other.

Rain Street
http://www.rainstreet.com

?Regional Angel Investor Network (RAIN) Funds are a vehicle for
accredited investors to become involved with local companies that have
exciting ideas and high potential.?

Cloud Start
http://www.cloudstart.com

?Since 2001, CloudStart.com has been committed to finding better ways
to connect entrepreneurs and angel investors.?

Best Match
http://www.bestmatch.co.uk

It is one of the largest angel investing sources in the UK. ?Through
its Bestmatch website, National Business Angels Network brings
together investors with commercial experience and companies looking
for development capital.?

Tech Valley Angel Network
http://techvalleyangels.com

Tech Valley Angel Network evaluates potential start-up businesses and
provides details of the existing opportunities to its members.

VFinanace
http://www.vfinance.com

?Vfinance.com attracts a huge global audience each year, creating a
perpetual deal stream for our bricks-and-mortar financial service
units and enabling us to identify emerging opportunities for the
clients.

Coastal Venture Investment Forum
http://www.coastalvif.org

VIF is a non-profit volunteer group that helps angel investors and
entrepreneurs come together to discuss business opportunities in
Georgia and South Carolina.

The Venture Site
http://www.venturesite.co.uk/default.asp

It is a UK based website that helps startup and early growth companies
find funding and advice on the informal venture capital (Business
Angel) market.

Angel Bourse Ltd.
http://info.angelbourse.com/bulk/index.shtml

It is a UK website that brings together angel investors and start-up
businesses so that they can benefit from each other.

Angel Legacy
https://www.angellegacy.com/

?Angel Legacy helps entrepreneurs fund early stage ventures and
startup business by providing resources, and finding a seed capital
source through Angel investor and accredited investors. It also helps
accredited investors and Angels find private equity opportunity in
startup and early stage seed round new business ventures and
entrepreneurs matching individual affinities.?

Source: http://www.tatu.us/directory/angel+investor
___________________________________________________________________________

REIGONAL ANGEL NETWORKS

Business Jeeves Directory
http://www.businessjeeves.com/MoneyVentCap_Reg.html

About thirty angel networks in USA are listed in this directory that
covers almost the entire USA. It also list very useful websites for
entrepreneurs and investors, alike.

San Francisco Angel Networks
http://www.vclist.com/linksangels.htm

Utah Angel Networks
http://dced.utah.gov/tech/venture.html

Useful Keywords & Search Criteria

?Angel Investors?
?Angel Investor network?
?Angel investor forum?

I hope it will help. Please clarify, if you do not feel satisfied. I
will be obliged to help you.

Sincerely,
Leader-ga.

Request for Answer Clarification by holguinero-ga on 15 Dec 2003 08:56 PST
did you find any outfits out there that help angel networks gets set
up (or operate, e.g., via back office services)?

Clarification of Answer by leader-ga on 18 Dec 2003 09:51 PST
Hello holguinero-ga:

Just a little clarification. Do you mean the outfits that help angel
investors set up their business?

Thanks.
Comments  
Subject: Re: angel investor networks
From: yorker-ga on 18 Dec 2003 23:51 PST
 
I think that leader-ga has done a very nice job in answering the
question, and deserves the fee. That said, I might be able to
contribute a bit more here, speaking as an active angel investor and
one who in currently in the process of reorganizing one of the larger
angel groups in the country. The first place you should check out is
the Angel Organization Summit web site maintained by the Ewing Marion
Kauffman Foundation, at http://www.angelsummit.org/. Kauffman has been
at the forefront of organizing all of us angels into something
approaching cohesion, and they have pulled together quite a bit of
information, together with links to virtually every significant angel
site and network in the country. Unfortunately, you just missed the
2003 Angel Organization Summit meeting itself, which was held last
month in Washington, DC. There were two days of 'best practices'
seminars, as well as representatives from most of the groups that
leader-ga found for you.

One of the neat things that was announced was the publication of a
wonderful new book that should be mandatory reading if you are
seriously considering starting up an angel group: "State Of The Art:
An Executive Briefing On Cutting-Edge Practices In American Angel
Investing". It is available directly from the Darden School at
http://store.darden.virginia.edu.  There are also dozens of other
books on angel investing that you can purchase on Amazon.com (just do
a search on "angel investing".)  Good luck with your group!

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