Topic: An overview of today’s Angel fund situation and how to get angel funding Startups Uncensored #5 Angel Funding Review Speakers: Kamran Pourzanjani CEO of Bestcovery and co-founder and former CEO of Pricegrabber Brett Brewer, co-founder of Intermix Media (parent company of MySpace) Matt Coffin, founder of LowerMyBills, Rick Smith, Managing Director of Crosscut Ventures (a los angeles based angel fund) Jeff Tinsley CEO and founder of MyLife (formerly Reunion.com) Bryce Benjamin of the TechCoast Angels The night started with a quick overview of Los Angeles’ entrepreneur scene and how it compared to the tech boom and bust of 1999-2001. All speakers agreed that the eco system in Los Angeles has never been this strong – Los Angeles has all the natural elements needed to be a excellent place to start a business: talent, knowledge, financing and great ideas. Matt Coffin made a great point, that it is much easier to be an entrepreneur today than in 2000 – entrepreneurship is very strongly encouraged today. So who is doing funding deals: Check out Tech Coast Angels and Pasadena Tech Coast Angels. They have submission forms right on their website. What kind of companies are getting funding? Kamran: Be at the head or at least early middle of a new technology. If you are at the end of the curve (if you’re in video, you’re too late). Always be thinking ahead Investors are looking for more mature business idea, team should be lined up. No one is funding just an idea. Proof of concept key Should I have an angel fund sign an NDA? No. Don’t even ask. They work with too many companies to sign NDAs and it makes you look like you don't know how funding works. So how do you get an angel fund to pay attention to you? Persistence, until you get a no, keep asking but don't be a stalker. When you get a no, back off and come back in a few months. Have a great idea and always be moving forward with it. Update potential investors with as you reach milestones, make hires or launch new products. In short: Accomplish what you say you will do. Over achieve and update potential investors on your continued successes. Be known in your entrepreneur market – the more people who know and like you, the better chance you end up on someone’s radar.
Investors put money in because they believe in the owner as well as the product. Angels are looking to succeed. Investors look at your TEAM – they want to see that you have people with experience working with you and backing you up. How much time should a company plan on getting funding through? 6 to 9 months but you'll get a fast no if they're really not interested Got funding, now what? Getting angel funding is the beginning of the relationship not the end. Continue to network and build relationships with investors Investors are interested in the exit strategy. Remember that.