Comments on: In a Down Economy, Angel Investors Change Course http://gigaom.com/2008/08/08/in-a-down-economy-few-angels-fly-away/ Trusted Insights and Conversations on the Next Wave of Technology Thu, 26 Nov 2009 06:47:41 +0000 http://wordpress.com/ hourly 1 By: Entrepreneurs | Angelsoft » Press FAQ http://gigaom.com/2008/08/08/in-a-down-economy-few-angels-fly-away/#comment-974906 Entrepreneurs | Angelsoft » Press FAQ Sat, 26 Sep 2009 14:38:23 +0000 http://gigaom.com/?p=16672#comment-974906 <p>[...] has written about Angelsoft? Techcrunch, New York Times, VentureBeat, PEhub, Wired, GigaOm, [...]</p> [...] has written about Angelsoft? Techcrunch, New York Times, VentureBeat, PEhub, Wired, GigaOm, [...]

]]> By: Angels Flock Together and Offer Less http://gigaom.com/2008/08/08/in-a-down-economy-few-angels-fly-away/#comment-934906 Angels Flock Together and Offer Less Tue, 31 Mar 2009 02:01:46 +0000 http://gigaom.com/?p=16672#comment-934906 <p>[...] Sohl said last August, when I wrote about angels in a down economy, “Since their net worth may be down, angels have less to invest, so we’re seeing that [...]</p> [...] Sohl said last August, when I wrote about angels in a down economy, “Since their net worth may be down, angels have less to invest, so we’re seeing that [...]

]]> By: Angels Den http://gigaom.com/2008/08/08/in-a-down-economy-few-angels-fly-away/#comment-922304 Angels Den Mon, 19 Jan 2009 10:31:07 +0000 http://gigaom.com/?p=16672#comment-922304 <p>I agree with Brian, its dangerous to generalise, however, I can see the advantages of an entrepreneur securing investment from 2, maybe 3, angel investors if the skills mix offered compliments his/her own as the capital alone isn't the sole reason to secure financing.</p> <p>It'd also be interesting to see how Stacey's views have changed, we've given our views <a href="http://www.angelsden.co.uk/blog/2009/01/business-investment-to-crash-in-2009.html" rel="nofollow">here</a> and we'd welcome your input.</p> I agree with Brian, its dangerous to generalise, however, I can see the advantages of an entrepreneur securing investment from 2, maybe 3, angel investors if the skills mix offered compliments his/her own as the capital alone isn’t the sole reason to secure financing.

It’d also be interesting to see how Stacey’s views have changed, we’ve given our views here and we’d welcome your input.

]]> By: When to Cash Out? Three New York City Entrepreneurs Reflect | Leveraging Ideas http://gigaom.com/2008/08/08/in-a-down-economy-few-angels-fly-away/#comment-900958 When to Cash Out? Three New York City Entrepreneurs Reflect | Leveraging Ideas Tue, 23 Sep 2008 05:35:37 +0000 http://gigaom.com/?p=16672#comment-900958 <p>[...] the panelists agreed that angel investment will not be deterred by the recent financial unnerving. Said someone, is it really that risky when you consider what’s [...]</p> [...] the panelists agreed that angel investment will not be deterred by the recent financial unnerving. Said someone, is it really that risky when you consider what’s [...]

]]> By: Brian Javeline http://gigaom.com/2008/08/08/in-a-down-economy-few-angels-fly-away/#comment-896742 Brian Javeline Sun, 31 Aug 2008 13:09:41 +0000 http://gigaom.com/?p=16672#comment-896742 <p>I disagree with the statement "that we're seeing that instead of one angel putting $100,000 into a deal, four or five angels might put in $25,000 to $20,000 apiece,”. There are still plenty of angel investors who will come to the table with a little more money for a successful venture than to just spread their money all over the place. From the entreprenuer's perspective, it will be much more complex to get the 100K deal from the four of five angels as opposed to 100K from just one angel. While the manager of the angel group will tell you he is the managing partner, it will still need to pass by everyone's eyes which will take time. I am not saying that it is not worthwhile, but I am saying that it is realistic to assume that working with an angel group will be as timely as working with a VC. Working with an individual will be quicker and more direct. I would like to add that I have 5 angel investors from California, Minnesota, New Jersey, Britain and Toronto looking for my next step up with an angel group or early stage VC, but maybe I may have to stay with another angel who can embrace the opportunity quicker.</p> I disagree with the statement “that we’re seeing that instead of one angel putting $100,000 into a deal, four or five angels might put in $25,000 to $20,000 apiece,”. There are still plenty of angel investors who will come to the table with a little more money for a successful venture than to just spread their money all over the place. From the entreprenuer’s perspective, it will be much more complex to get the 100K deal from the four of five angels as opposed to 100K from just one angel. While the manager of the angel group will tell you he is the managing partner, it will still need to pass by everyone’s eyes which will take time. I am not saying that it is not worthwhile, but I am saying that it is realistic to assume that working with an angel group will be as timely as working with a VC. Working with an individual will be quicker and more direct. I would like to add that I have 5 angel investors from California, Minnesota, New Jersey, Britain and Toronto looking for my next step up with an angel group or early stage VC, but maybe I may have to stay with another angel who can embrace the opportunity quicker.

]]> By: The Product Guy’s Weekend Reading (August 15, 2008) « The Product Guy http://gigaom.com/2008/08/08/in-a-down-economy-few-angels-fly-away/#comment-894130 The Product Guy’s Weekend Reading (August 15, 2008) « The Product Guy Fri, 15 Aug 2008 14:47:30 +0000 http://gigaom.com/?p=16672#comment-894130 <p>[...] your weekend enjoyment, are some highlights from my recent reading, for you. On Starting Up…http://gigaom.com/2008/08/08/in-a-down-economy-few-angels-fly-away/On the changing course of Angel [...]</p> [...] your weekend enjoyment, are some highlights from my recent reading, for you. On Starting Up…http://gigaom.com/2008/08/08/in-a-down-economy-few-angels-fly-away/On the changing course of Angel [...]

]]> By: Rob Adler http://gigaom.com/2008/08/08/in-a-down-economy-few-angels-fly-away/#comment-892698 Rob Adler Fri, 08 Aug 2008 12:27:44 +0000 http://gigaom.com/?p=16672#comment-892698 <p>This is a great time to be an angel investor with liquidity. Angels tend to put their money into companies that are pre-product. This means that their start ups they are investing in today are presently developing and building out the product, rather than trying to sell in a difficult economy. While there are no guarantees, these companies have a better chance of success if they are coming to market when the economy improves.</p> <p>Combine this with the ability to invest at more reasonable valuations, the business cycle is providing a great opportunity for the angels.</p> This is a great time to be an angel investor with liquidity. Angels tend to put their money into companies that are pre-product. This means that their start ups they are investing in today are presently developing and building out the product, rather than trying to sell in a difficult economy. While there are no guarantees, these companies have a better chance of success if they are coming to market when the economy improves.

Combine this with the ability to invest at more reasonable valuations, the business cycle is providing a great opportunity for the angels.

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