David Cohen's talk on Angel Investment

Hi. I’m David Cohen. @DavidCohen

I’m going to talk about Angel Investing

iContact 39 companies in 3 years 30 angel or venture backed

Everything I’m about to say could be wrong

Angels or VCs? Stop. First, should you raise money?

Angels or VCs? How Much Do You Want To Raise?

Recognize that for most of you raising angel investment will be very difficult.

Usually Difficult

Many of us will fail

The point? Do not take this lightly. It must be a priority or you will almost certainly fail.

Rule #1: Do or do not, there is no try

Angels and VCs: What’s the difference? First, let me assure you....

There is a difference

Angels and VCs: What’s the difference?

Angels and VCs: What’s the difference? Amount of money invested per deal.

Angels and VCs: What’s the difference? WHERE probably matters more.

Angels and VCs: What’s the difference? Some have never even entered the tournament.

Angels and VCs: What’s the difference? They may be coming from very different places.

Angels and VCs: What’s the difference? “Why do you do angel investing?” “Mental exercise” “Giving back” “Being a part of something” “Improving the ecosystem” “I enjoy being a mentor” oh, and sure... “Making money”

What do angel investors look for? ★Potential for a large return. ★Great entrepreneurs. ★Strong business plan. ★Exit strategy. ★Go to market strategy. ★Unfair competitive advantage. ★Good valuation. ★Strong advisors/co-investors. ★External validation. ★Scalable business model. ★Low capital needs.

Secret Economics of the Angels

Great Entrepreneurs ★“There are three things I look for as an early stage investor”

Great Entrepreneurs ★“There are three things I look for as an early stage investor” ★The team ★The team, and ﬁnally ★The team.

What do angel investors look for? ★Potential for a large return. ★Great entrepreneurs. ★Strong business plan. ★Exit strategy. Blah, blah, blah. ★Go to market strategy. ★Unfair competitive advantage. ★Good valuation. ★Strong advisors/co-investors. ★External validation. ★Scalable business model. ★Low capital needs. I’m going to take a different approach.

What do angel investors look for? Resources: http://bit.ly/cohensingapore

What is the RIGHT way to approach angel investors?

Remember the motivations “Why do you do angel investing?” “Mental exercise” “Giving back” “Being a part of something” “Improving the ecosystem” “I enjoy being a mentor” oh, and sure... “Making money”

How to approach angel investors If you want money, ask for advice. If you want advice, ask for money.

Be thoughtful.

How to approach angel investors

How to approach angel investors Recognize that it is a relationship. Corollary: Never ask for money in the ﬁrst meeting. Probably not in the second or third meeting either.

How to approach angel investor What is the goal of a ﬁrst meeting?

How to approach angel investor What is the goal of a ﬁrst meeting? The get a second meeting.

Have you seen this?

You are pitching to a room full of strangers RUN AWAY!

How to approach angel investor Remember the motivations. Angel investors generally invest because they develop a meaningful relationship with the entrepreneur.

Remember the motivations. Desire to mentor. To be a part of something. To get mental exercise.

This is what you covet

Do you have an advocate? I’ve been working with these guys.

Do You Have A Lead Investor?

I've Got Maybe's, Now What?

The other two thirds

I Can't Get <Person> To Return My Phone Call

Everyone Passed, Now What?

What Happens If I Don't Raise Money?

Learn more: www.TechStars.org David@TechStars.org @DavidCohen @TechStars

What do angel investors look for? http://blog.guykawasaki.com/2005/12/ the_102030_rule.html http://blog.guykawasaki.com/2006/01/ the_top_ten_lie_1.html http://headrush.typepad.com/creating_passionate_users/2006/12/ dont_make_the_d.html http://blog.guykawasaki.com/2006/01/how_to_be_a_dem.html http://www.secondderivative.com/Reading.html http://www.demo.com/demoletter/how_to_give_a_great_demo.php http://www.Demo.com http://www.demo.com/demonstrators/demo2006fall/79781.php http://www.demo.com/demonstrators/demo2006fall/79986.php

David Cohen's talk on Angel Investment

by e27 Singapore on Oct 27, 2009

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