Entrepreneurs

» Bonny Albo - Are You Looking for Cash for Your Business?

Do you have any leads for angel investors, or know of websites that list them? Please post them here, along with any personal experiences, suggestions or ideas that you have.

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» Bonny Albo - Number of Angel Investor Groups More than Doubles

From: Inc.com | July 21, 2006 By: Melanie Brooks

The average group now makes close to six deals a year, investing nearly $1.5 million, according to a new study.

The number of organized angel investor groups has increased almost 60% in the last three years, from 150 in 2002 to 250 in 2005, according to a new study by the Angel Capital Education Foundation and the Ewing Marion Kauffman Foundation.

"Angels have gone from investing as individuals and sometimes forming ad-hoc groups for certain investments, to creating formal groups with robust investment processes," said Marianne Hudson, executive director of ACEF and entrepreneurship director at the Kauffman Foundation.

ACEF promotes education and research in the field of angel investing and is part of the Kauffman Foundation, a Kansas City, Mo.-based nonpartisan group that works to advance entrepreneurship and education.

Angel groups are made up of a number of wealthy individuals who pool their resources and invest in deals that may be higher in quality than what they could have invested in alone. Individual investors who join an angel group do so for a variety of reasons, according to Hudson, including diversifying their portfolio, learning from their peers, sharing the workload, and the enjoyment of working with like-minded investors.

"Many of today's angel investors are far more educated about investment in great part thanks to such sophisticated angel groups who have shared best practices," Hudson said.

The study surveyed angel group members of the Angel Capital ***ociation, a professional alliance of 200 angel groups the U.S. and Canada, and found that in 2005, the average angel group invested $1.45 million with each individual investor contributing an average of $33,236 per deal.

The survey also found that the average angel group has 41 members, has been in operation for 4.3 years, made an average of 5.46 investments in 4.49 companies last year. The groups studied were also shown to have a preference for investing in the medical device and software industries, along with software and biotechnology companies.

Angel groups are creating a new type of capital for high-growth, early-stage entrepreneurs who need between $100,000 and $1 million in equity funding. The individual angel investor usually contributes no more than $100,000 and venture capital firms start their funding in the $2 million range, Hudson said.

"Venture capital firms are making larger investments in later-stage companies," Hudson said. Angel groups close the financial gap between the individual angel investor and venture capitalists.

For companies in search of angels, Hudson suggests connecting with other entrepreneurs already backed by angel or VC funding, as well as local bankers, accountants, and community leaders. "Finding the right investor is all about networking in your community," Hudson said.

For a list of angel investors, broken down by general area in the US only: http://www.inc.com/articles/2001/09/2346...

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» VentureFarm - Venture Farm addresses the #1 reason for business success.

Venture Farm Execution Institute Announces a unique interactive workshop for Entrepreneurs
Venture Farm is an innovation in early stage investing and is specifically not an angel investor, not a VC and not an Incubator.
Mission Viejo CA December 29, 2006 -- Sid Mohasseb, the managing director for Venture Farm, has announced a unique interactive workshop for Entrepreneurs. This course addresses what over 85% of venture investors believe is the #1 reason for success: "effective business execution."
January 25-26th 2007 Westin South Coast Plaza, Costa Mesa, CA. Venture Farm Institute workshop: Driving towards Execution: Funding, Profitability & Exits. Space is Limited.

This is a 2 day interactive boot camp style workshop focusing on
effective business execution, getting from concept to reality and achieving the BIG difference to show results.

Attend for FREE by being selected for a CASE Study.

This program is for those who are dead serious about success, willing
to learn and ready to execute.

The program will include discussions on:

• Elements of getting from planning to execution

• Fundamentals of business execution

• Planning for "Exits"

• Building meaning for customers

• Elements of effective decision making

• Funding mindsets (Entrepreneurs vs. Investors)

• What makes an opportunity fundable

• Negotiating deals & term sheets

• Building performance

• Case studies (selected from workshop participants)

.and MORE

About Venture Farm:
Venture Farm is an equity funding source that adds hands-on experience to the execution process without replacing the management.

Venture Farm addresses the existing gaps in the venture capital and angel investing process and offers an innovative investment model that provides the fund's Limited Partners with the ability to participate in the early stage investment process while potentially recognizing short term returns based on partial exits. To reduce risks associated with execution 1) capital is infused in an incremental manner and based on measurable progress; 2) portfolio performers get a larger share of the available capital and more assistance; 3) an experienced and focused managing director contributes significant time to each deal; 4) portfolio diversity and 5) a strong network of domain advisers.

Unlike standard VC funds, Venture Farm's management fees are value driven only (no performance, no fees) and the managing partner's direct investment is close to five times higher than standard models.

Venture Farm is an innovation in very early stage investing and is specifically neither an angel investor group nor an Incubator or a VC.

Venture Farm Institute is the Enterprise development arm of the Venture Farm Fund, it's mission is to help Enterprises learn and focus on what is critical to their future success: Business Execution.

For more information please contact Pete Vara at pete@venturefarm.com

To learn more please visit: www.VentureFarm.com.

-- posted by VentureFarm

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