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.

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