Angel
Investors for Young Companies seeking Capital
Angel Capital
The Gathering Of Angels is an Angel
Investor
Forum where 6 companies present with PowerPoint for 20 minutes each
followed by 2-5 minutes of Questions & Answers. Accredited Angel
Investors, VCs and Investment Bankers attend our events complementary.
Each GOA presenter pays $2500 presentation fee with no % of
angel capital raised.
Included in the GOA presentation fee is 3 hours of virtual coaching, mentoring
and consulting from GOA CEO Tarby Bryant to insure that your presentation is
clear, concise and defensible.
Atlanta GOA Guests
Davis Driver of
Driver Software Systems at Atlanta GOA on
August 27, 2008
We also
provide coaching on capital & corporate structure, valuation,
cost of funds, exit strategies, mgt. Team and other
presentational enhancements to your PowerPoint efforts.
We helped 17 young
companies find capital in 2006 and have 10 success stories in
2007 YTD.
GOA Success Stories –2008
FrontLine Promotions-CEO
Paul Sidwell gets capital for Auto Dealership Promotions
Company from Atlanta Angel.
CPT Medical-Connie
Liesman, CEO-770-377-8279-Medical ER Room pack company gets
capital from Santa Fe Angel
Carbon Motors-CEO
Bill Li gets capital for Police Vehicle company from Atlanta
Angel
Rubber Recycling-Greenville
based tire recycling company gets capital via Atlanta
Investment Banker
Viaja Travel-Mexico
centric Online Travel Agency gets 250k from Santa Fe Angel
BioTech Medics-CEO
Keith Houser of Dallas TX does JV with Santa Fe
Angel-972-274-5533
Deep Liquidity-Houston
based CEO Sam Balabon gets 100k from Santa Fe
Angel-832-358-5003
Tow Truck in a Box-San
Francisco based auto accessory company gets another round
of capital from Atlanta Investment Banker
HyperWerx-Austin
based software developer gets more capital from Santa Fe
Angel
Vanguard Mortgage-Denver based Mortgage & Title
company gets more capital from Atlanta Angel
We are your source for angel
capital, seed and early stage capital, start-up capital, venture capital, and
first round financing.
The Gathering of Angels is a monthly meeting of private, high net-worth
Angel Investors, also referred to as "Angels," venture capitalists and merchant
bankers. The event is hosted by Tarby Bryant, Chairman of the Sweetwater Capital
Corporation. The mission of the Gathering of Angels is to provide first stage
"seed level and angel capital" financing to startup and early stage firms.
WASHINGTON—Angel group leaders expressed optimism about the climate for
investments in early-stage businesses in 2008 in a recent survey by the
Angel Capital Association (ACA). This optimism comes despite the
slowdown of the US economy and follows a year in which investment
activity stayed level with 2006.
In the
Angel Group Confidence Report of North American angel group leaders, ACA
member angel group leaders predicted that the quantity and quality of
entrepreneurial investment proposals will increase in 2008 and that the
number and amount of investments they anticipate making will grow
slightly this year.
The survey
was completed by a majority of ACA member groups and respondents are
located in 37 American states and Canadian provinces.
“These
predictions may indicate that sophisticated angel groups and perhaps
other private investors have different reactions to economic challenges
than public markets,” said John May, chairman of ACA and co-manager of
the Washington Dinner Club in Washington, DC. “We have found that new
entrepreneurial opportunities can arise in turbulent times like these.”
Angel
investors are high net-worth individuals who make equity investments in
entrepreneurial businesses, and angel groups are formed when individuals
join together to evaluate investment opportunities and make investments.
Currently, there are about 275 angel groups operating in the United
States and Canada, an increase of 65 percent since 1999.
Predictions for 2008
Not only do
nearly half of angel organizations expect deal flow to improve in both
quantity and quality this year, but they expect investment activity to
continue at the same level or increase somewhat this year over 2007.
Nearly 55
percent of the respondents said that the number of investments and total
dollars invested will increase this year, with another 32 percent
believing that the activity would be the same as 2007.
All angel
group leaders predicted that their group would invest in a new company
in 2008 — with 81 percent planning to invest in three to nine companies.
Most impressively, twelve percent think they will invest in ten or more
companies.
Predictions
for positive exits were not as rosy. Fifty eight percent of responding
angel group leaders did not think there would be any visible change in
opportunities for acquisitions of their portfolio companies or Initial
Public Offerings this year, after fewer angel groups experienced
positive exits in 2007 compared to the previous year. Another 17 percent
predicted a decrease in exit activity.
John
Huston, ACA Board member and founder of the Ohio Tech Angels in
Columbus, Ohio notes that the two different predictions may fit
together.
“Angel
organizations may be betting on economic growth in the long-term for
strong exits in the future while also are seeing an increase in the
number of high quality entrepreneurs pitching for investment. When you
add supportive state policies to develop entrepreneurial talent and grow
the amount of capital available in different parts of the country, there
are great opportunities for angel group investments in 2008.”
In
follow-up interviews of its members, ACA did find that some groups are
concerned that their capacity for investment may be reduced if problems
continue in the public stock markets.
Many angels
have investments in corporate stocks and may lose some liquidity, and
therefore will have reduced ability to make angel investments, if the
public markets don’t grow this year. These concerns were factored into
the 2008 predictions, but the strength of deal flow appears to have led
to the generally optimistic forecast.
2007
Angel Group Investment Activity
ACA angel
investment groups made an average of 7.3 investments in 2007, with
average total funding of $1.94 million.
These
numbers are similar the numbers that angel groups reported in 2006, in
which they invested an average of $1.78 million in 7.4 deals. The
average size of an investment per round for a group was $265,926 in
2007.
Co-investment was a key component of angel group activity in 2006:
Two-thirds of the reporting groups noted that their portfolio companies
received investment from venture capital firms, either as co-investment
in the same round or as follow-on funding as the entrepreneurial
ventures grew. In addition, 65 percent of the respondents reported
co-investing with other angel groups in the same early-stage firm,
allowing for larger overall investments in promising companies.
Investment Preferences
By a
considerable margin, the reporting angel groups prefer to invest in seed
and start-up companies (81 percent) and early-stage firms (85 percent),
than they do in expansion (38 percent) and later stage companies (6
percent).
This focus
complements venture capital, which currently invests mostly in growth
and expansion-stage opportunities.
The groups
expect little change to the stage of companies in which they will invest
in 2008. Additionally, the groups also provided follow-on funding for
their portfolio companies – an average of three of angel groups’ 7.3
deals in 2007 were follow-on investments in portfolio companies.
Angel group
leaders expressed interest in a wide variety of industries in the
survey. Five industry areas were of particular interest:
Software (83 percent)
Medical Devices (75 percent)
Industrial/Energy – including “clean tech” (64 percent)
Business Products and Services (64 percent)
IT Services (63 percent)
Few angel
groups specialize in a particular industry area, and most have interests
and expertise among their member investors in a variety of other areas.
Five other industry areas were preferred by 50 percent or more of the
responding angel groups, including: Biotechnology; Consumer Products and
Services, Electronics and Instrumentation; Healthcare Services; IT
Services; and, Networking and Equipment.
The
industry preferences are slightly different than in 2006, when the
Medical Device category had the highest level of interest.
Based on
the survey and additional anecdotal evidence, the area of greatest
growth is clean tech, which attracts interests from ACA members across
the continent and is also the subject of a few new angel organizations
that were formed in 2007 or 2008.
Angel Investors were very
active in 2007 as observed by Tarby Bryant, CEO of The Gathering of Angels,
a nationwide Angel Forum. In 2007, 15 young companies were funded by
attending Angel Investors at the monthly meetings of GOA across USA.
Software, medical device, internet, niche product offerings and aggregations
were successful in attracting capital. Required for successful funding of
their companies was a very tight 1-2-3 page executive summary, a powerful
15-20 slide PowerPoint Presentation and tenacious follow up of all
interested parties after the GOA meetings of interested Angels. Funding
normally occurs 1-10 days after the GOA event and in 2007 ranged from 50k to
1.5M in seed and early stage capital injected into the presenting company.
Angel Investors who will
write checks to young companies seeking seed and early stage capital are
everywhere and Gathering of Angels provides a monthly gathering venue for
them to come together and hear for companies from all over the USA who
travel to the GOA venue. Practice sessions occur in the afternoon before the
GOA event which begins at 5pm with wine, soft drinks and a light supper.
Interested Angel Investors and capital seeking Entrepreneurs will often have
dinner together that night or breakfast or coffee the next day if investment
interest is keen. Most Angels will review the ex summary, listen to the
PowerPoint presentation, ask questions in the Q&A session and then read the
full business plan and do limited due diligence before making the investment
decision. Most Angel checks are 50k, 75k or 100k with one 250k check written
in 2007.
"Knight attended Gathering of Angels’
monthly meetings in which the organization brings together 20 to 40 high
net worth investment seekers. To stimulate interest and confidence in
his business he provided financial documents and gave a PowerPoint
presentation detailing the current state of operations and future plans
for future growth. In turn, investors queried him regarding his
background, track record, revenue and profits and qualifications for
capital."
Continue Story
Is Angel Capital or
Venture Capital best for your immediate Capital Needs?
Entrepreneurs know they
need capital to expand their respective businesses and add inventory or
add staff to handle new channels of distribution. Our banks often are
unprepared to handle this need and equity capital is required to take
the firm to the next level. For capital needs from $100,000 to 1.5M, I
suggest Angel Investors over a Venture Capital Firm whose funding
normally starts at 5M. Angels normally write checks from 50k to 1.5M and
often go together with the Entrepreneur and join his/her Board of
Advisors or even Board of Directors. Angel Investors are also a lot
faster in their decision time from first introduction to writing a check
is normally 1-15 days following reading the business plan, making a few
calls to confirm markets, mgt team and valuation issues.
Angel Investors at the
Gathering of Angels come together monthly in different cities like Santa
Fe, Atlanta , Hilton Head SC and Scottsdale and listen to 4-6 young
companies present for 20 min each with PowerPoint + 2-5 min of Q&A. The
Angels listen to the presentations, read and evaluate the 1-2 page
executive summary and if interested, ask for full business plans to
review, do limited background checks and talk to informed friends and
advisors and then decide to invest or to pass.
What the Angel Investor
gets in exchange for his/her capital investment is a function of the
valuation of the young company. Valuation is a measurable science even
for a pre-revenue company and is the real art of Angel Investing and
proper distribution of equity interest in the young company.
Angel Investors are really “Value Added Investors”
You have funded your
start-up company yourself from idea to first customer and drained all
your savings ,401k plans and retirement nest egg to bring your great
idea into reality. Your family and circle of friends have been
supportive but not financially. Now is the time to seek out Angel
Investors who your currently do not know and present your business plan,
executive summary and 15-20 slide PowerPoint presentation to Angel
groups across the country. Angel Investors reside in big cities and
resort/retirement communities across the USA and will, myth not
withstanding, invest out of their local area into companies with great
potential, huge untapped markets, strong management teams, clear exit
strategies and reasonable valuations.
Once you commit to raise
that needed seed and early stage capital that will range from $50,000 to
1.5 Million, you need to present early and often to Angel Groups, Angel
Clubs and Angel Forums across USA. What you get from Angel Investors
will surprise you.
Angel Investors are
“Value Added Investors” and often unlike friends and family, they bring
more than just money to the table. Angel Investors can indeed bring
needed capital but also industry expertise, large contact bases and
often that “Golden Roladex” or data base of industry contacts, seasoned
experience in corporate America, coaching skills, interest in serving on
your Board of Advisors or even your Board of Directors, filling interim
gaps on your management team like CFO, CTO, COO or even CEO if you are
the mad scientist or geek and not the ultimate CEO.
Finding an Angel
Investor for your start-up company is good for you as the Entrepreneur
but also for the Angel Investor. He/she puts in needed capital for a
piece of common stork equity and a chance to invest in the next
Microsoft, Google, UTube or FaceBook but also this is an opportunity to
live the start-up dream and get mental and visceral satisfaction by
genuine contribution to your success. The Angel Investor gets to use
his/her brain, capital, contacts and expertise to make you a successful
venture. This is truly a “Win-Win” for both parties, so pick your Angel
Investor wisely and their contribution could be huge.
Seasoned Angel Investors
can assist you in realizing your dreams as they can provide much more
than just seed capital.
Time to start your
search for your Angel Investor!
Vanguard Mortgage & Title-Denver-more
capital from Atlanta Angel
Feel Golf-Monterey
CA-company gets capital from Santa Fe Angel
Three Dog Bakery-Albuquerque
NM-company gets capital from Santa Fe Angel
Solar Breeze-Phoenix
AZ-75K in seed capital from Santa Fe Angel
ViajaTravel-
Mexico-Mexico centric online travel agency gets 100k in capital from
Santa Fe Angel
Nextronics-Austin
TX-Santa Fe Investment Banker provides capital
Rubber Recycling- SC based
used tire recycler gets capital from SC based investment Banker
Children’s Education Network-Austin
based software company is acquired by Excite Learning
AOI Medical-Atlanta
based back pain company goes public on London Stock Exchange for 16M
Centurion Investment Partners-Memphis
based Mutual Fund raises capital from Santa Fe Angel
Green Panel Corporation-Prescott
AZ-Joe Burton , CEO-Santa Fe Angel facilitates large capital pool
for green construction company.
Gathering of Angels 2006 Fundings
1.Nirvana-Scott
Shickler-770-330-0733-Atlanta fast casual restaurant gets $$$ from 2
Atlanta Angels.
2.True
North Technologies-Doug
Nassaur-678-634-0040—200k from Charlotte Angel (Software as a service)
3.Clearwave
Corporation-Gerard
White-678-738-1137—Capital from a Columbia Angel( Medical Kiosks
for Doctors and Dentists Offices)
4.Learning
Enhancement Corporation-
Roger Stark-312-239-2186-100k in Capital from Charlotte Angel ( Early
childhood software)
5.Genziko--Capital
from Atlanta Angels
6.Nextronics-Spencer
Brown-254-776-2632—Capital from Austin TX Angels ( Fuel efficient
engines)
7.Advocate
MD-100k
from Austin Angels( Medical malpractice insurance)
8.Mother’s
Delight-Atlanta
Angel provided bridge capital and management guidance (Shrimp & Crab
retail food products)
9.HyperWerx--Santa
Fe Angel provided 300k in seed capital and guidance. (Operating System
for Super & Hyper computers)
10.Boron
Holdings--VC
fund provided media credits and funding.( auto additive for efficiency
and cost savings)
11.Renew
Refinishing-Atlanta
Angels provide capital.
12.East-West
Development-Atlanta
Angels provide capital.
13.Frontline
Promotion Products—Atlanta
Angels provide capital (Auto Dealer promotions)
14.Women’s
Celebration-—Atlanta
Angels provide capital. ( Womens’ magazine)
15.Premise
Media Corporation-Logan
Craft—505-982-9355—Santa Fe Angel provides capital-( DVD and movie on
Intelligent Design)
16. Dre Allen Project-LA record
company-200k from Santa Fe Angels
Gathering of Angels 2005 Fundings
International Exploration Corporation-Ken Juno, CEO-Capital from JAX Angels
Kudzu Interactive-Jim Garrett, CEO-404-754-8754-250k from Atlanta
Angel
Diamics-Peter Gombrich-415-883-0414-Capital from 3 Santa Fe Angels
Hyper-Werx-Will Braswell, President-Capital from Santa Fe Angel
Rainbow Vision Santa Fe-Joy Silver-Capital from Santa Fe Angel
Continental Divide Services-Don Howard-719-658-2682-Capital from Santa
Fe Angels
Serometrix-Jim Cappon,
CEO-315-447-9424-100k in capital from Atlanta Angel.
AOI Medical-John Feltman,
CEO-Atlanta -404-931-6247-capital from Santa Fe Angel and Angel joined Advisory Board of company
Angel capital fills the gap in start-up
financing between the "three F"s (friends, family, and fools) of
seed capital, and venture capital. While it is usually difficult to
raise more than US$100,000 - US$200,000 from friends and family, most
traditional venture capital funds are usually not able to consider
investments under US$1 - 2 million. Thus, angel investment is a common
second round of financing for high-growth start-ups, and accounts in
total for almost as much money invested annually as all venture capital
funds combined.
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Coming Soon THE ENTREPRENEUR A new video series featuring interviews with
hot new companies.
ONLINE PRESENTATIONS
1. 1-2-3 page ex summary
2. 15-20 slide PowerPoint
3. Picture of CEO and his CV
4. Full contact information
5. Management Team briefs + Pictures Click Here for
more information
Testimonial
Tarby,
On behalf of our shareholders and employees, I wanted to personally
thank you for the support you provided to Clearwave. Clearwave was
able to successfully raise money because of your coaching, focus and
determination. There are not many avenues in which small companies
like Clearwave can raise money; however, you provide a vehicle that
allows it to happen quickly. Thanks again, and our team will always
consider you a great partner.
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