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  register for our blog at http://www.angelinvestmentnetwork.net/wp-login.php?action=register.

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

Or are you looking to raise funding?  Send me a summary of your project at mike@angelinvestmentnetwork.co.uk and we’ll try to help.

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:

  • Bitbar, the startup behind cloud-based mobile app testing platform Testdroid, has closed $3 million funding
  • Bitium, a powerful SaaS management tool that lets you get more out of the apps you work with every day, closes $2.4M seed funding
  • Crowdtilt, the simple-to-use platform to pool money online, has closed $12 million Series A funding
  • Yodo1, a leading publisher of Western smartphone games for China’s iOS/Android market, has raised $5 million Series A funding
  • Evolve Vacation Rental Network, an online booking platform for vacation rental properties, has raised $2.7M Series A funding
  • Motain, the company behind The Football App, which brings all manner of information to football (soccer) fans, lands €10M Series A funding
  • Zonoff, creator of the Intuitive Home platform for home automation, has raised $3.8M venture capital funding
  • Tastebuds.fm, the social service that helps you meet new people through music, has closed a $600k seed investment
  • GoCardless, a UK startup that helps businesses set up automatic bill pay, direct debits & recurring payments, gets $3.3M Series A funding
  • Online lifestyle marketplace Pepperfry.com has raised $8 million Series B funding from Norwest Venture Partners
  • Ionic Security, delivering the first unified cloud & mobility security platform for the enterprise, closes a $9.4M Series A investment
  • LevelEleven, a company focused on enterprise gamification and CRM technology, has secured $1.5M seed financing
  • BodeTree, an online service that helps small business owners better understand their finances, has raised $1.4M seed funding
  • PhoRent.com, a Peer to Peer rental community where you can list any item you own “Pho Rent”, receives $100,000 seed funding
  • Upstart, which allows you to back promising college graduates for a small share of their future income, raises $5.9M Series A funding
  • Skimlinks, a platform that gives publishers control over affiliate links and content monetization, completes a financing round
  • Bluetrain Mobile, a start-up that offers tools to easily craft mobile marketing websites, has raised $1.53M seed funding
  • ZooZ, a consumer-driven payment platform startup, has closed a $2 million Series A funding round
  • Seelio, a startup where users can create an online portfolio to highlight their work, has raised $900,000 seed funding
  • Nativo, a startup aiming to make it easy for online publishers to run sponsored content, has raised $1.8M seed funding
  • CrowdMed, which harnesses ‘the wisdom of crowds’ to solve even the world’s most difficult medical cases, just raised $1.1M seed funding
  • Gcorelab, developer of a new technology to control the thermal issues that plague lithium-ion batteries, attracts S$589,000 funding
  • Mavatar, a shopping app that searches for deals on items in your cart and applies coupons automatically, raises $1 million seed funding

To get regular updates, come follow us on Twitter: http://twitter.com/angel__network or register for our blog at http://www.angelinvestmentnetwork.net/wp-login.php?action=register.

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

Or are you looking to raise funding?  Send me a summary of your project at mike@angelinvestmentnetwork.co.uk and we’ll try to help.

 

Crowdfunding is great for start-ups but is it so great for investors?

I want to start by clarifying two things. Firstly that I am a big fan of donation-based crowdfunding, where people can donate money to creative or social projects that they’re interested in and want to support.  And secondly that I think crowdfunding sites are a very valuable tool for start-ups as they offer an additional route to raising capital (and maybe more accessible for those who aren’t connected to angels or VC’s). However, from my experience in angel investing, I see some big issues for investors who choose to use crowdfunding sites.

1) Lack of Experience

A report written by Robert E. Wiltbank, Ph.D (Associate Professor of Strategy & Entrepreneurship at Willamette University, Oregon), showed that angel investors with entrepreneurial expertise outperformed those without it, especially in earlier-stage opportunities (see figure 2 below taken from the report).  The same study also showed that angels who invested in opportunities where they have specific industry expertise failed significantly less (see figure 3 below). Since crowdfunding is open to the general public, many of the investors will be inexperienced without entrepreneurial or industry expertise, which means their chances of making a good return on investment would be significantly reduced.

2) No Due Diligence

Formal venture capital investors regularly spend hundreds of hours evaluating potential investments before making a commitment. It has been proved that even a relatively small amount of due diligence can help avoid failure. Crowdfunding investors are expected to make their final decision based on reviewing whatever documentation is available online, maybe asking a few questions by email and having no face-to-face interaction with the team at all. In short, I feel the inability for investors to do proper due diligence is a recipe for disaster.

3) No Investor Involvement

One of the main advantages of traditional equity funding is that the company gets the benefit of the angel’s or VC’s experience, contacts and expertise. Research has shown that, where investors become involved in businesses in which they invest at a strategic level, leads to significantly better final results.  However, this obviously isn’t possible with crowdfunding, as most crowdfunding sites stipulate that the investors must remain silent partners.  Also, no founder in their right mind would want a crowd of hundreds of investors breathing down their neck.

4) Bad Dealflow

I think most entrepreneurs revert to crowdfunding as a plan B after they don’t manage to raise funding from angel investors or venture capitalists. Why would anyone want the hassle of hundreds of silent shareholders who add no strategic value when they could have a small group of investors who will use their experience, expertise and contacts to help drive the business forward? Surely that means that a lot of the companies on crowdfunding sites are the deals that have already been turned down by angels, which means you’re basically investing in angel investors’ leftovers?

Entrepreneurship and start-up creation are critical to any country’s economic development, so I think it’s great that entrepreneurs have a new way to raise funding.  On the flipside, my main concern is that if you apply the same stats from angel investing to crowdfunding, the investor returns are going to be worryingly low.

What’s your view?  Have you (or someone you know) had any problems investing through crowdfunding sites? Or on a more positive note have you invested in a crowdfunded company that has gone on to become a success?

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:  

  • Showpad, which makes iPad software for sales teams, has raised $2 million Series A funding
  • Playdek, a mobile portal, developer and platform for tabletop gaming, has closes $3.8M Series A funding
  • Deliv, a startup that helps national retail chains provide same-day delivery services through a crowdsourced model, raises $1M seed funding
  • Bespoke Post, a subscription-based e-commerce startup offering a hilariously titled “Box of Awesome”, closes $850K seed funding
  • Cumulogic, a Java Platform-as-a-Service company, has raised an undisclosed amount of seed funding
  • Dashboard.io, a platform for funded startups to connect with and benchmark against their investors’ portfolios, gets $750k seed financing
  • Food52, the crowdsourced cooking website, has raised $2 million in Series A funding led by Bertelsmann Digital Media Investments
  • ZoomCar, a membership-based, self-drive car rental service based in Bangalore, raises $215K in angel funding
  • Chewse, a B2B marketplace for group meals focused on getting offices of workers fed, has raised $1 million in seed funding
  • Cooleaf, a company focused on making living healthy more fun, has closed $375,000 seed funding
  • Grand St., an online marketplace for buying “creative technology” products, has received $1.3M seed funding
  • BusyLife Software, a mobile software company offering business and consumer software products, closes an oversubscribed funding round
  • ElectNext, a startup that helps anyone, anywhere engage on their most important political issues, raises $1.3M seed funding
  • Larky, a startup that helps users take better advantage of discounts and benefits from various organizations, raises $650,000 seed funding
  • Lagoa, an impressive browser-based 3D rendering platform, has raised $1.6M in seed funding
  • NetSocket, a leading provider of network service assurance solutions for unified communications, secures $9.2M Series B funding
  • UrgentRx, developer of fast-acting over-the-counter flavored powder medications, has closed $2.5M Series B funding
  • EAT Club, a Palo Alto-based food delivery service, has raised $5 million Series A funding led by August Capital
  • Haiku Deck, a free presentation app for iPad that makes presentations simple, beautiful, and fun, raises $3M Series A funding
  • MokiMobility, a cloud-base mobile device management (MDM) platform, lands $2 million seed funding
  • Dublin start-up Converser, a CRM and cloud communications platform which can be embedded within mobile apps, closes US$1.2M seed funding
  • IndoorAtlas, a Finland-based indoor location and positioning technology startup, has snagged a seed investment of about $640,000
  • DailyLook, a fashion site that offers one complete look on sale for 36 hours every day, gets $2.5 million seed funding

To get regular updates, come follow us on Twitter: http://twitter.com/angel__network or register for our blog at http://www.angelinvestmentnetwork.net/wp-login.php?action=register.

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

Or are you looking to raise funding?  Send me a summary of your project at mike@angelinvestmentnetwork.co.uk and we’ll try to help.

 

Anatomy of Seed – An inside look at a $1M seed round

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:

  • Human Demand, a mobile ad startup targeting the long tail of app developers, has raised $900K Series A funding
  • Spanning Cloud Apps, creators of the data protection solution Spanning Backup for Google Apps, secures $6M Series B funding
  • Mumbai-based online payments company Citrus Payments Solutions raised $2M Series A funding from VC firm Sequoia Capital
  • AdzCentral, an ad-matching platform from Singapore, raises $3.2M Series A funding from Electric Sheep Capital & Digital Media Partners
  • WizeHive, a productivity tool that allows users to build and deploy online business applications, has closed a seed funding round
  • Import.io, a cloud-based platform for analyzing “big data” from the web, has raised £600,000 seed funding
  • Japanese group coupon buying site Luxa just closed its Series B funding of $5.3 million (500 million Yen) from JAFCO
  • Vidyard, a video marketing and analytics platform for businesses, has raised $6M in Series A funding
  • Indochino, the leader in custom online menswear, has raised $13M Series B financing
  • Red e App, a real-time mobile messaging platform for enterprises with a high proportion of mobile workers, closes $750k Series A funding
  • ClearFit, a company that uses automated software & algorithms to bubble up the top applicants for employers, gets $7M Series A funding
  • iStreamPlanet, a maker of live streaming video technology, has raised an undisclosed amount of Series A financing led by Intel Capital
  • Pingage, a startup that helps consumer brands boost results on Pinterest, closed an $850,000 seed round
  • PeopleLinx, the provider of the world’s first LinkedIn engagement and analytics software, has raised $3.2M Series A funding
  • Joyride, a developer of voice-activated mobile apps for drivers, has raised $1M in seed funding
  • OpenDNS, the domain-name-server-provider-turned-security-company, has raised an undisclosed second round of Series B funding
  • AssetTrackr, a Bangalore-based company providing personal vehicle tracking solutions, has secured $500,000 angel funding
  • SocialExpress, which offers small businesses & marketers online tools to generate custom social media reports, lands €250,000 seed funding
  • Bina Technologies, the genomic big data science platform accelerating personalized medicine, has closed $6.25M Series B funding
  • Minimally Invasive Devices, which offers tools to help surgeons achieve better results during laparoscopic procedures, raises $9M funding
  • WizeHive, a startup that provides a platform for businesses to create apps, has raised $1M seed funding
  • Centzy, a local search startup putting prices, store hours, ratings and specials for businesses online, gets $1.6M seed funding
  • Reputami, a tool for small businesses to analyze customer feedback on social media & location-based services, closes seed funding
  • ZeaKal, a San Diego-based plant science company spun out of Kapyon Ventures, has raised $3.8M Series A funding
  • Blume Distillation, a leading provider of appropriate-scale alcohol fuel (bioethanol) production equipment, lands $2.2M Series A funding

To get regular updates, come follow us on Twitter: http://twitter.com/angel__network or register for our blog at http://www.angelinvestmentnetwork.net/wp-login.php?action=register.

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

Or are you looking to raise funding?  Send me a summary of your project at mike@angelinvestmentnetwork.co.uk and we’ll try to help.

 

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:

  • LeadSift, whose software combs through Twitter and Facebook data to generate sales leads, has pulled in $1.13 million funding
  • Mention, the social media app that lets you track your brand, name or otherwise, has raised 600K€ seed funding
  • Cause.it, a mobile app that connects volunteers with nonprofits and local brands, raised $500k in seed funding
  • iPawn, a leading lender of low-interest, asset-based, online loans, has closed $4M angel funding
  • Billaway, a fully customized and branded reward program for Fuel Oil Dealers, has netted $1.1 million funding
  • DeveloperAuction, a startup that lets venture-backed companies bid on top engineers in auctions, has closed $2.7M seed funding
  • Casual game developer Arkadium has accepted a $5M Series A investment from Edison Ventures
  • Shizzlr, a mobile application development company focused on private group sharing between friends, raises seed funding
  • Singapore restaurant booking site Chope raises $2.5M Series B funding
  • Indian Angel Network has invested in Nagpur-based RankJunction, a ranking platform for competitive exams
  • GreenLancer Energy, a company that outsources green technology & engineering improvements to freelancers, has secured $277,500 funding
  • Divshot, a drag-and-drop builder to make app building quicker and easier, raises $1.1M in seed funding
  • YaSabe, a local search engine for Hispanic consumers, has closed $2.7M seed funding
  • VendAsta, a provider of white label digital brand management solutions, has raised $8.25M Series B funding
  • SkoolShop, a Mumbai-based niche etailer of school and education-related products, has raised Series A funding
  • Delhi-based LocalCircles India Pvt Ltd, which runs a community-based social network LocalCircles.com, has landed angel funding
  • Finland and Singapore-based mobile games developer Nonstop Games has secured $2.9 million in seed funding
  • Rexter, a provider of a Professional Relationship Management (PRM) system, has raised more than $1.5m in seed funding
  • SoundSupply, a digital music discovery and marketplace company, raises seed funding led by Lightbank
  • PeopleLinx, the provider of the world’s first LinkedIn engagement and analytics software, has raised $3.2M Series A funding
  • Canva, an Australia-based startup that is aiming to disrupt the desktop design industry, has raised USD 3M in seed funding
  • Chalkfly, the downtown Detroit-based school supplies startup, has raised $750,000 in a Series AA round

To get regular updates, come follow us on Twitter: http://twitter.com/angel__network or register for our blog at http://www.angelinvestmentnetwork.net/wp-login.php?action=register.

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

Or are you looking to raise funding?  Send me a summary of your project at mike@angelinvestmentnetwork.co.uk and we’ll try to help.

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 or register for our blog at http://www.angelinvestmentnetwork.net/wp-login.php?action=register.

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

Or are you looking to raise funding?  Send me a summary of your project at mike@angelinvestmentnetwork.co.uk and we’ll try to help.

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:

  • clypd, the interactive television and video ad exchange, has closed a $3.2 million Series A investment round
  • SoMoLend, a debt-based crowdfunding platform, has closed $2.18M seed stage funding
  • MyPermissions, an easy way to control and clean up web and mobile apps that access personal data, has raised $1 million financing
  • Gridtential Energy, a startup aiming to improve storage performance of standard lead-acid batteries, raises $1M seed funding
  • Adcade, a mobile advertising platform focused on interaction, has raised over $1.5M seed funding led by ff Venture Capital
  • Scoot & Doodle, a real time, social creativity platform where friends and classmates get creative together, closes $2.25M seed funding
  • Slate Science has closed $1.1M angel funding for its tablet apps that help children learn science, technology, engineering & math
  • Matterport, a developer of 3D scanning technology, has raised $5.6 million in Series A financing
  • Marketing automation software firm SalesFUSION has raised $1 million Series A venture capital funding
  • Delhi-based startup Playcez has closed seed funding for an events discovery app for Indian users
  • Tracx, a powerful social media management system to analyze, measure, engage & monetize the social web, has closed $3.5M Series B funding
  • Sproutkin, a San Francisco, CA-based subscription service for children’s books, raises $1m in seed funding
  • MacuLogix, a startup focused on early detection and tracking of age-related macular degeneration, has raised $3.6M Series A funding
  • InvestmentYogi, a personal finance portal that helps Indians manage their investments, taxes and finances, raises ~$500K angel funding
  • Dobleas, a global mobile marketing platform offering a Real-Time Bidding solution, has closed $5.4M Series B funding
  • Beebrite, a startup that designs games and tools to improve brain performance and productivity, raises €200k seed funding
  • Festicket, a unique online service that lets people book a full package for music festivals, lands $680,000 seed funding
  • Startupi, a site covering the Brazilian startup scene, has raised $300,000 seed funding
  • Catchpoint Systems, a provider of innovative web and infrastructure monitoring solutions, has closed $3.2M series A financing
  • Enterprise storage company SwiftStack has raised $6.1 million in Series A funding led by Mayfield Fund
  • Warply, a mobile marketing as a service startup, has secured $500,000 in seed funding
  • iCoolhunt, an Italy-based gamified photo-sharing platform for crowdsourcing trend spotting, has raised €500k seed funding
  • 500Friends, the social loyalty solution for e-commerce retailers, has raised $5 million in Series B funding

To get regular updates, come follow us on Twitter: http://twitter.com/angel__network or register for our blog at http://www.angelinvestmentnetwork.net/wp-login.php?action=register.

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

Or are you looking to raise funding?  Send me a summary of your project at mike@angelinvestmentnetwork.co.uk and we’ll try to help.

Infographic – Angel Investment vs. Venture Capital in the US

This is an Infographic comparing Angel Investment with Venture Capital in the US.