Published: 8/30/2007 2:07:12 PM, comments: 0
This is the third installment of the series How to Deal With Angel Groups and it's about the process, specifically what happens after you send your summary or plan to the group.
At this point, you're waiting to hear back from the the angel group which is evaluating your concept. Most likely, the group is emailing the information to various members on a selection committee and depending on the group's organization, they may have a rating system they apply to your plan.
The rating system would include things like: quality of management, status of product or service development, market size, scalability, technology, funding amount required and valuation expectations, if any.
Once the group has brought together its opinion of your opportunity, you'll be notified if they have further interest and would like to set up an initial screening meeting. If the group asks for further information, that's usually a good sign - by all means furnish the information requested.
The next post will be about the initial, in-person screening meeting.
Published: 8/24/2007 10:13:28 AM, comments: 0
This is the second installment in a series about how to deal with angel groups if you're an entrepreneur seeking funding. Today's topic will be about the beginning of the Process
In my view, one of the values of dealing with angel groups is that they usually have a process of evaluating the merits of an investment in your company. Usually, the beginning of the process involves you sending them an executive summary or filling out an online form(s) designed to help the angel group compare your business to others in a format they are comfortable with.
I highly recommend that you work hard to provide your information in the angel group's format, even if it is more work for you. It is essentially "speaking their language." If you want to create the impression that you are easy to work with and establish a relationship with, this is your first test!
So do everything you can to cooperate with their initial information requests. It's the best way to start off on the right foot.
Published: 8/15/2007 10:39:35 AM, comments: 0
I'm starting a new series that should provide some insight on how angel groups operate and how entrepreneurs can best deal with the process of contacting them and going through the evaluation process.
The first part of the process is the Approach
There are a few ways to approach an angel group - one is by
being "sponsored" by a member of the group. This usually means that
you've developed a relationship with a member and shared the business
opportunity with him or her and they bring you into the angel group
evaluation process by stating "I'm going to invest in this company and
I think it is a great opportunity to invest." Obviously this is
the warmest introduction you can get.
The next warmest introduction is through an attorney, accountant,
consultant or other person who puts you in touch with someone at the
angel group who then helps you through the process.
The last way is "over the transom," where you contact the group
yourself directly by phone, email an executive summary or go
through the angel group's online registration system. Even though this approach is not via an introduction, you shouldn't downplay this opportunity. Angel groups are very active and are looking for quality opportunities wherever they may be.
Published: 8/9/2007 9:46:20 PM, comments: 0
As information search (and find) becomes an ever increasing important resource in our daily lives, the question follows, "Are you findable?"
Morville has an interesting book about "Ambient Findability" and my
takeaway from it is that for both online or offline businesses,
understanding how people and potential customers find you is critical
to success. Making your company easily findable to prospects at
various stages of their buying or research process should be a high
priority for you.
VentureDeal was launched in October, 2006 and
we have consistently improved our visibility and findability for
potential users of the database. It isn't easy or obvious, though
perhaps there are people out there who we could have paid a lot of
money to tell us. Instead, we consistently iterated and measured the
results from the changes we made. We're pleased with those results so
I encourage you to think about how to make it easier for
your prospects to find you - online and offline. They're out there,
you "just" have to get your company in front of them...