Thursday, March 13, 2008

some insights on angel investing

David Rose, the founder of New York Angels and Angelsoft, a software application that helps angel investing groups manage plans received by entrepreneurs, gives some great info on angels and angel investing.
[...] some highlights:
* There are 600K new companies started each year.
* Of those 350K are self-funded, 200K are funded by friends and family, 50K by Angel investors, and a mere 1200 by venture capitalists.
* The average angle has spent 9 years investing, had done 10 investments, had 2 exits (profitable or lost their money), and 10% of their wealth is tied up in angel investments.
* Angels look for companies with Scalable Business Models, an "Unfair Advantage," Great Entrepreneur, External Validation, Low Investment Requirement, Reasonable Valuation ($1 to $3 million pre-money range), and a 20 to 30 times return on their investment within 5 to 7 years.
* The single most important characteristic an Angel investor looks for in an entrepreneur is Integrity. Then they look for Passion, Experience, Knowledge, Skill, Leadership, Commitment, Vision, Realism, and Coachability.

No comments: