Angel Investment Network’s Weekly Funding Roundup

Here’s a roundup of some of the recent seed-stage and angel deals from around the world: 

  • Dubset, whose tool, MixScan, picks out the songs in a DJ’s mixtape, lands $500k from angel investors & Governing Dynamics Venture Capital
  • Online donation site, Fundraise.com, expects to raise some cash of its own next week in a $1.2m round from investors including Atlas Venture
  • Beepl, a startup that bills itself as an expertise platform and semantic technology company, lands seed funding from VC firm Credo Ventures.
  • uKnow.com, a provider of parental intelligence systems, raise $1m seed funding from investors including the Center for Innovative Technology
  • Openspace Store, a startup set on establishing the “world’s largest app store,” has raised $500,000 in angel funding led by Foundry Group
  • Endece has raised an additional $1.2 million in funding from its private investors to advance the development of its leading cancer compound
  • Travergence, which helps travellers research and book activities, has closed a seed round from a group of investors
  • ShareMyPlaylists has secured £250,000 in angel funding from angel investor Mark Pearson, chairman of Markco Media Ltd / MyVoucherCodes
  • Diversion, a social gaming studio, has raised an undisclosed amount of seed funding and signed an ad deal with Sony
  • NuMe Health, a biotech company developing evidence-based prebiotics designed to address specific health conditions,raises $675,000 financing
  • TroopSwap.com, which offers daily deals exclusively to military families, raises $925k in funding from prominent angel investors
  • LucidChart, a web-based diagramming application, has raised $1m seed funding from 500 Startups, 2M Companies, K9 Ventures & angel investors.
  • PodPonics, an innovative technology-driven urban agriculture start-up, has completed a seed funding round of $725,000 from private investors
  • TribeHR, a startup that develops human resources software for SMBs, has closed a $1 million round of seed funding from Matrix Partners
  • ThinkNear, a startup focused on helping local merchants reach consumers with mobile, location-based ads, has raised $1.6M seed funding

To get regular updates, come follow us on Twitter: http://twitter.com/angel__network.

Have you managed to raise capital for your company?  We always love to hear from entrepreneurs who manage to get funded.

Are you an angel? Alternative ways to invest

What do Yahoo, Google, Cisco, Amazon.com and Costco have in common? They were all funded by angel investors. An angel investor provides capital for a business startup in exchange for convertible debt or ownership equity. The Centre for Venture Research has estimated that there are more than 300,000 angel investors in the United States and 125 formal angel investor networks nationwide. In 2010 angels invested $20.1 billion in startups; up more than 14 percent from 2009.

Angels exist to fill the gap between friends-and-family funding and venture capital funding. Investments generally range from $20,000 to more than $1 million with an average in the $300,000 range. Some angels are members of angel groups or funds. This participation increases access to investment opportunities and allows for joint investment with other angels to hedge their risk. This also allows angels to investing companies without great financial commitments. The sectors in which angels most commonly invest: software/websites, medical devices, healthcare services, alternative/green energy and life science/biotechnology.

The appeal of being an angel is that you can receive a significant return on your investment in a relatively short period. If a company is successful, angels may expect to receive a seven to ten times return on their investment within five to seven years. However, angel investing is a high-risk/high-reward type of investment. Most startups will not succeed. Angels should not invest money they can’t live without. Angels often invest in companies in afield similar to which they have achieved success. They may act as advisors to companies and offer resources to help them succeed. For these reasons, angels often invest in companies in close proximity to them.

When investing in a company, angels invest in people just as much as they invest in the product or technology, so a strong management team is essential. Angels look for a market disruptor, game-changing technology or product that can obtain large market share quickly. Having a well-written business plan, qualified attorneys and CPAs, protected intellectual property and an exit strategy are all imperative for a startup to receive angel funding. Past entrepreneurial success also is looked at very favorably.

To encourage investment in early stage companies, the IRS is allowing investors who purchase stock in small businesses to exclude 100 percent of the gain on the sale of the stock if held for more than five years. This rare opportunity to receive tax-free income expires at the end of 2011.

Angel communities are budding throughout the United States. In several areas throughout the country, you can find angel groups or forums that meet regularly. Joining an angel group or meeting with a CPA or attorney who works with startups can be a good resource to match angels with companies. If you are a retired professional looking to stay active in your field or look to act as an advisor or mentor to young entrepreneurs, seek a high-return on your investment or perhaps just desire an alternative way to invest, then you may want to consider becoming an angel.

This is a guest post by Jason A. Brown, Chairman of the Angel Forum of Florida (www.aiffl.org).

Angel Investment Network’s Weekly Twitter Roundup

Angel Investment News 

  • Small Business Investment – Treasury Wants ‘angel’ Investment In Start-ups: http://bit.ly/o6pBTY
  • Chris Farmer, a venture partner at General Catalyst Partners, talks about his ranking of venture capital firms: http://wapo.st/o0qBp9
  • India Considering Incentives For VCs to Steer Towards SMEs: http://bit.ly/oMIfs3
  • The accredited investor requirement does little to protect unsophisticated investors and reduces access to capital: http://bit.ly/qKl0iy
  • Kauffman Foundation unveils ‘Startup Act’ proposal to boost growth of new businesses and add jobs to the US economy: http://bit.ly/nTloJL

Business Plans & Pitching

Fund Raising

Marketing & Social Media

Start-Up & Entrepreneurship

To stay updated, come follow us on Twitter: http://twitter.com/angel__network.

Read anything interesting? Feel free to add links to any articles or resources you’d like to share with the angel community.

The Most Expensive Keywords in Google AdWords

On the heels of Google’s blow-out Q2 2011 earnings announcement last week, WordStream.wanted to find out what keywords demand the highest costs per click and are most competitive in terms of high search volume. Since the vast majority of Google’s profits come from AdWords advertising, these high CPC keyword categories are responsible for a large part of Google’s profits. The results of their research are illustrated in an infographic of the most expensive keywords.

The 20 keyword categories with the highest search volume and highest costs per click, thereby netting Google the most money, are:

  1. Insurance (example keywords in this category include “buy car insurance online” and “auto insurance price quotes”)
  2. Loans (example keywords include “consolidate graduate student loans” and “cheapest homeowner loans”)
  3. Mortgage (example keywords include “refinanced second mortgages” and “remortgage with bad credit”)
  4. Attorney (example keywords include “personal injury attorney” and “dui defense attorney”)
  5. Credit (example keywords include “home equity line of credit” and “bad credit home buyer”)
  6. Lawyer (“personal  injury lawyer,” “criminal defense lawyer)
  7. Donate (“car donation centers,” “donating a used car”)
  8. Degree (“criminal justice degrees online,” “psychology bachelors degree online”)
  9. Hosting (“hosting ms exchange,” “managed web hosting solution”)
  10. Claim (“personal injury claim,” “accident claims no win no fee”)
  11. Conference Call (“best conference call service,” “conference calls toll free”)
  12. Trading (“cheap online trading,” “stock trades online”)
  13. Software (“crm software programs,” “help desk software cheap”)
  14. Recovery (“raid server data recovery,” “hard drive recovery laptop”)
  15. Transfer (“zero apr balance transfer,” “credit card balance transfer zero interest”)
  16. Gas/Electricity (“business electricity price comparison,” “switch gas and electricity suppliers”)
  17. Classes (“criminal justice online classes,” “online classes business administration”)
  18. Rehab (“alcohol rehab centers,” “crack rehab centers”)
  19. Treatment (“mesothelioma treatment options,” “drug treatment centers”)
  20. Cord Blood (“cordblood bank,” “store umbilical cord blood”)

They found that that 97% of Google’s revenue comes from advertising on Google sites. In the last four quarters alone (Q3 2010-Q2 2011), Google brought in $32.2 billion in total advertising revenue.

Google AdWords is a dynamic, auction-based marketplace where advertisers bid on keywords to compete for top ad placement. The minimum bid per keyword is 5 cents, but this research shows that in highly competitive categories, Google can make up to $50 per click. Despite a diversified product portfolio, advertising on Google sites accounts for the vast majority of its billions in annual revenue.

The keyword categories with the highest volumes and costs represent businesses with very high lifetime customer value – in other words, these industries can afford to pay a lot to acquire a new customer. These businesses include lawsuits, mortgage applications, and server hosting. Some high-volume keyword categories have lower CPCs because advertisers have slimmer margins to expend on PPC advertising.

Please visit http://www.wordstream.com/blog/ws/2011/07/18/most-expensive-google-adwords-keywords for the full study results.

VC funding in second quarter continues 2011 uptick

Private company research firm CB Insights today released a new report on the state of venture capital financing for the second quarter of 2011. With $7.6 billion invested in 768 deals in the second quarter, we are on track to see $29 billion to $30 billion invested through all of 2011.

Quarterly VC investment Q3 2009 to Q2 2011

California, Massachusetts, and New York combined to take nearly 75 percent of U.S. venture capital funding in the second quarter of this year, the highest concentration in five quarters. California remained on top with deals in the state up 27 percent and dollars up 19 percent. California’s deals were primarily centered on Internet companies, followed by health care, with the two sectors combining for 58 percent of the state’s deals and 56 percent of the funding.

After reviewing the report and statistics, I’m starting to think that we aren’t actually in a bubble, but may be at a peak of what is the new normal in terms of overall investment dollars. Considering that that the number of deals has stayed relatively stable, and that certain months have spiked two years in a row, statistically it looks like the bubble worries have been overwrought.

If nothing else, this report suggests that it’s a great time to start a company and look for venture financing.

Source: http://news.cnet.com/8301-13846_3-20079496-62/vc-funding-in-second-quarter-continues-2011-uptick/#ixzz1SA0pn4OO

 

Size of Angel Investment Funding Rounds in the UK

According to a report by Colin Mason, there is a wide range in overall angel deal size, ranging from less than £25,000 to over £1m (the two biggest being deals of £5.8m and £18m). However, most deals are in the £50,000 – £500,000 range.  Fewer than 10% of deals were for £1m or more.  LINC Scotland investments are slightly larger, with 51% of £200,000 or more compared with 45% of BBAA investments.

Deal sizes were smaller in 2009/10 than in 2008/09: 56% of BBAA investments in 2009/10 were under £200,000 compared with 48% in 2008/09. This was even  more extreme in the case of LINC Scotland where 49% were under £200,000 compared with only 36% in 2008/09.

Angel Investment Network’s Weekly Twitter Roundup

Angel Investment News 

Business Plans & Pitching

Fund Raising

Marketing & Social Media

Start-Up & Entrepreneurship

To stay updated, come follow us on Twitter: http://twitter.com/angel__network.

Read anything interesting? Feel free to add links to any articles or resources you’d like to share with the angel community.

Angel Investment Network’s Weekly Funding Roundup

Here’s a roundup of some of the recent seed-stage and angel deals from around the world:

  • MinuteBids, a service for property managers to quickly get bids for any of their property maintenance needs, closes $300,000 seed funding
  • Online radio startup Earbits has landed $605,000 seed funding from Y Combinator, Charles River Ventures, Start Fund and Geoff Ralston.
  • Gamzee, a developer of HTML5 and mobile/social games, has raised $1 million in a seed round of funding
  • Eki Communications has raised $250,000 in its angel round from Blume Ventures and the Rajiv Dadlani Group, a consortium of angel investors
  • card.io, whose software allows consumers to use their smartphone camera to pay with a credit card, closes a $1m seed round of funding
  • Xsporture, a social media platform that brings together athletes, coaches and fans, has secured angel funding from Christopher Rouland
  • Folium Partners, a producer of multimedia and audio book apps, gets a $300,000 investment from the Southern Oregon Angel Investment Network
  • OneLogin, a cloud-based single identity platform for the enterprise, has raised $1.5 million in Series A funding from Charles River Ventures
  • Skin Scan, an iPhone medical app to scan skin for melanoma, has secured €50,000 Euro in seed funding from Seedmoney
  • 3 Penn students are quitting school to launch a new education startup called Coursekit, and they’ve raised $1 million seed funding to do it
  • Hitlantis, a revolutionary free new music service for independent artists and music lovers, has closed a $1.5 million angel investment
  • BestVendor, a startup that uses social recommendations to help business leaders make purchasing decisions, raised $600,000 in seed funding
  • Impermium has landed $1m seed financing to accelerate development of the world’s first service to deliver “anti-spam for the social web”

To get regular updates, come follow us on Twitter: http://twitter.com/angel__network.

Have you managed to raise capital for your company?  We always love to hear from entrepreneurs who manage to get funded.