Infographic: Highlights of angel investment activity and trends in North America

The Angel Resource Institute (ARI), Silicon Valley Bank (SVB) and CB Insights today announced findings from the first Halo Report, a collaborative effort to raise awareness of early stage investment activities by angel investment groups.  The research series highlights angel investment activity and trends in North America and provides much sought after data that has not been previously available to entrepreneurs or early stage investors.

Halo Report Highlights:

  • Angel groups are active throughout the U.S. in 2011
    • California leads in deals and dollars among individual states
    • 79% of angel group investments were in companies outside of California
    • 70% of total funding was invested outside of California
    • Median angel group rounds size grew to $700,000, an increase of 40% over 2010
    • 58% of angel group investments were in healthcare and internet companies
      • 60% of healthcare investments were in medical device and equipment companies
      • The most active angel groups were Tech Coast Angels, Band of Angels, Golden Seeds, Central Texas Angel Network and Launchpad Venture Group

      Angel investors, those who invest their own funds and expertise directly into startup companies, appear to be taking on an increasingly important role in driving entrepreneurship throughout the United States.  Their investments are in startups and young companies, which have been cited by the Kauffman Foundation as the key source of net new jobs in the country.  Nationwide, these angel group investments have opened up new opportunities for centers of innovation and entrepreneurship.  The Halo Report found that many deals are syndicated among investors.  As a result, companies needing larger investments have access to the additional capital they need to grow their businesses. read more

Business Plan (Elevator Pitch) Template

An elevator pitch is a short business plan used to quickly and simply define a business concept and the plan proposition. The “elevator pitch” reflects the notion that it should be possible to deliver the business plan to the potential investor in the time span of an elevator ride, or approximately thirty seconds to two minutes.


Source: https://www.template.org/?p=189

Infographic: The Wealth of Warren Buffett, The Legendary Investor

Warren Buffett is an American business magnate, investor, and philanthropist. He is widely regarded as one of the most successful investors in the world. Often introduced as “legendary investor, Warren Buffett“, he is the primary shareholder, chairman and CEO of Berkshire Hathaway.

This infographic done with Mint, looks at what his empire, Berkshire Hathaway, is built upon.

Source: https://www.sociableblog.com/2011/10/09/the-wealth-of-warren-buffett

Infographic: Why Does Content Go Viral and What Drives Us to Share It?

These days everyone from marketers to designers, bloggers and video producers dream of “going viral.”  Everyone wants to be the next Charlie Bit My Finger or Old Spice guy.  But striking it viral can be difficult.  There’s no exact recipe or formula and going viral requires luck (and frequently money as well), but ProBlogger has done a little research and asserts that, even if you can’t guarantee virality, understanding the key components of what makes content go viral can help you ensure that your great content gets “the attention it deserves.” read more

Infographic: A Visual Look at Funding — Comparing Equity vs Debt Financing

Business loans, angel investors and venture capitalists — in many cases, these three entities are determining the success or failure of small businesses across the country.

This graphic takes a deep look at each source of capital, have uncovered how much money is going where, and identified common considerations, compromises and benefits of each. In the end, this gives a good visual look at the state of business financing in today’s economy.

Source: https://www.lendio.com/blog/visual-funding-infographic/ read more

7 Common Mistakes Made by Angel Investors

As the head of Angel Investment Network, I’ve had the chance to speak with a lot of angels over the years.  When discussing their experiences, some things kept coming up again and again…

1) Not looking at enough deals

Make sure you look at as many investment opportunities as possible.  The more business plans you read, the more likely you are to find the one that pushes all the right buttons.  It also lets you  notice industry trends and see if any competitors and emerging.  Last year I read about 50 plans about wind turbines, who all claimed to be the best.  You quickly realize that there are so many new players fighting for market share that it would be a very difficult call to make in terms of making an investment. Professional venture capitalists expect to look at 100 companies for every investment they make, so you should join several angel groups to make sure you see as many deals as possible. read more

Creating an Early Stage Pitch Deck

A picture from the white board at Ryan Spoon’s presentation on creating early stage pitch decks (primarily focused on the seed round).

Please take this for what it’s worth: just one investor’s opinion. As is true with everything – the best answer is “it depends”. It depends on your background, your company, your raise, and your audience.

50 Quick Tips on Raising Angel Funding – Part 2

  • Avoid general statements, such as “We will provide excellent customer service” or “I am very hard working”.  Everyone could make these claims. 
  • Do due diligence on any investor you’re thinking of doing a deal with.
  • Try to target angel investors with experience in their industry – their expertise will be invaluable.
  • Expect the angels to want an active day-to-day role to share advice, knowledge & expertise.
  • Ask for a non-disclosure agreement to be signed if there is any information you feel uncomfortable disclosing to the investor.
  • Remember no legitimate investor will ask you to pay money.
  • Be completely open from the beginning.  If an investor finds a skeleton in your closet, the deal will be off.
  • A market with high growth potential is very attractive to investor.
  • Start your pitch with “a hook” – a statement or question that grabs the investors’ attention and makes them want to hear more.
  • Don’t write “No Competition”.  There is always competition, even if it is indirect competition.
  • Be enthusiastic – Investors expect energy and dedication from entrepreneurs.
  • Don’t use acronyms – people outside the industry won’t know what they mean.
  • Gestures, body language (e.g. nodding and smiling) and confidence are very important when you’re speaking to investors.
  • Ask family, friends and colleagues for feedback about your business plan and pitch.
  • The more you practice your pitch, the more relaxed you’ll be when you’re in front of the investors.
  • It’s really worth spending money on a good lawyer.
  • Don’t be afraid to admit your weaknesses and admit you may need help in certain areas or strengthen part of your team.
  • Use short paragraphs, bullets and lists: This makes it easier and quicker for the investors to read.
  • Don’t write “Guaranteed Return”.  No return is guaranteed!
  • Check your business plan for spelling and grammatical errors they make you look unprofessional.
  • Don’t say “My projections are conservative”.  90% of companies say the same thing.
  • Make sure you have legit market research to back up your claims about market size and competition.
  • If applicable, investors will want to see that you have the necessary patents and protection in place.
  • Don’t say “We only need a 1% marketshare to have a turnover of 1 million” – financial projections don’t work like that.
  • Last but certainly not least (here comes the sales bit), visit www.angelinvestmentnetwork.co.uk if you need any help raising funds.  In the top right corner, you’ll find a drop-down list of all our networks around the world.
  • read more