0
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 exerci...
What do angel investors look for?

    ★Potential for a large return.
    ★Great entrepreneurs.
    ★Strong business plan....
What do angel investors look for?

    ★Potential for a large return.
    ★Great entrepreneurs.
    ★Strong business plan....
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...
What do angel investors look for?

       ★Potential for a large return.
       ★Great entrepreneurs.
       ★Strong busin...
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...
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 meet...
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
   ...
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
                       th...
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/2...
David Cohen's talk on Angel Investment
David Cohen's talk on Angel Investment
David Cohen's talk on Angel Investment
David Cohen's talk on Angel Investment
David Cohen's talk on Angel Investment
David Cohen's talk on Angel Investment
David Cohen's talk on Angel Investment
David Cohen's talk on Angel Investment
David Cohen's talk on Angel Investment
David Cohen's talk on Angel Investment
David Cohen's talk on Angel Investment
David Cohen's talk on Angel Investment
David Cohen's talk on Angel Investment
David Cohen's talk on Angel Investment
David Cohen's talk on Angel Investment
David Cohen's talk on Angel Investment
David Cohen's talk on Angel Investment
David Cohen's talk on Angel Investment
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Transcript of "David Cohen's talk on Angel Investment"

  1. 1. Hi. I’m David Cohen. @DavidCohen
  2. 2. I’m going to talk about Angel Investing
  3. 3. iContact 39 companies in 3 years 30 angel or venture backed
  4. 4. Everything I’m about to say could be wrong
  5. 5. Angels or VCs? Stop. First, should you raise money?
  6. 6. Angels or VCs? How Much Do You Want To Raise?
  7. 7. Recognize that for most of you raising angel investment will be very difficult.
  8. 8. Usually Difficult
  9. 9. Many of us will fail
  10. 10. The point? Do not take this lightly. It must be a priority or you will almost certainly fail.
  11. 11. Rule #1: Do or do not, there is no try
  12. 12. Angels and VCs: What’s the difference? First, let me assure you....
  13. 13. There is a difference
  14. 14. Angels and VCs: What’s the difference?
  15. 15. Angels and VCs: What’s the difference? Amount of money invested per deal.
  16. 16. Angels and VCs: What’s the difference? WHERE probably matters more.
  17. 17. Angels and VCs: What’s the difference? Some have never even entered the tournament.
  18. 18. Angels and VCs: What’s the difference? They may be coming from very different places.
  19. 19. 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”
  20. 20. 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.
  21. 21. 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.
  22. 22. Secret Economics of the Angels
  23. 23. Great Entrepreneurs ★“There are three things I look for as an early stage investor”
  24. 24. Great Entrepreneurs ★“There are three things I look for as an early stage investor” ★The team ★The team, and finally ★The team.
  25. 25. 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.
  26. 26. What do angel investors look for? Resources: http://bit.ly/cohensingapore
  27. 27. What is the RIGHT way to approach angel investors?
  28. 28. 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”
  29. 29. How to approach angel investors If you want money, ask for advice. If you want advice, ask for money.
  30. 30. Be thoughtful.
  31. 31. How to approach angel investors
  32. 32. 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.
  33. 33. How to approach angel investor What is the goal of a first meeting?
  34. 34. How to approach angel investor What is the goal of a first meeting? The get a second meeting.
  35. 35. Have you seen this?
  36. 36. You are pitching to a room full of strangers RUN AWAY!
  37. 37. How to approach angel investor Remember the motivations. Angel investors generally invest because they develop a meaningful relationship with the entrepreneur.
  38. 38. Remember the motivations. Desire to mentor. To be a part of something. To get mental exercise.
  39. 39. This is what you covet
  40. 40. Do you have an advocate? I’ve been working with these guys.
  41. 41. Do You Have A Lead Investor?
  42. 42. I've Got Maybe's, Now What?
  43. 43. The other two thirds
  44. 44. I Can't Get <Person> To Return My Phone Call
  45. 45. Everyone Passed, Now What?
  46. 46. What Happens If I Don't Raise Money?
  47. 47. Learn more: www.TechStars.org David@TechStars.org @DavidCohen @TechStars
  48. 48. 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 
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