Angel Investing
by Tarby Bryant
Published in Edge Magazine
We love my startup and we are killing it in the marketplace but we are running out of Cash!" This is the common refrain of young startup businesses that have the next greatest idea, have bootstrapped their idea with savings and then friends and family; and finally Uncle George stops returning your callsfor more investment in your venture. They are too early for venture capital and big investment banking houses are far down the road for sources of capital. Maybe they should consider investments from Angel Investors who can provide not only seed capital but valuable advice and wise counsel as they grow and scale their venture.
Angel Investing has been around for 100 years and has funded many of the Broadway shows; and then the Silicon Valley startups found the capital they needed to grow and scale and Angel Investors became the needed rocket fuel at just the right time. Angel Investors today are financially secure men and women who have excess disposable income streams, idle cash and savings and are prepared to take a risk on a young and often unproven company for the hope of an inordinate return to compensate for the risk. Angel Investors are all across the globe and live where they choose, and invest their own capital and do not rely on a board decision to invest 25k to 2M USD. It is their money and capital; and if they like and trust you as the CEO, believe you have assembles a strong and long management team and Advisors with domain expertise, they will normally write a check 1-45 days after hearing your pitch and doing limited due diligence.
Angel investing does follow and appreciate new trends like robotics and artificial intelligence but will invest in basic industries that have high margins and hold promise for a 5 to l0X return on capital. Over my 50 years as an Angel Investor, I have seen the visceral side of investing and emotion and passion often elicit a check when a rational decision would suggest against the investment. Angel Investors are human and respond to prepared entrepreneurs who know their "stuff" and can communicate with industry knowledge and full disclosure of weaknesses and strengths. Transparency and openness of shortcomings of chinks in your armor are encouraged. Angel Investors will walk away when the books and records of your venture are not on QuickBooks but in a small box with your payables.
Angel Investing is an acquired art not science; and Angels like Venture Capitalists do make mistakes, bet on the wrong horse, but we are financially strong enough to absorb a loss on occasion. Investing in seed and early stage companies is high risk, but the hope of a high return of 5 to 10 X is sufficient inducement to attract Angel capital. You as an entrepreneur can find your needed capital for Angels if you are prepared with a novel offering, strong business plan and executive summary and convincing 12-20 slide PowerPoint Deck when you get the opportunity to pitch to a single Angel or an Angel Forum.
The Gathering of Angels is an Angel Forum and was founded in Santa Fe NM in October 1996 and since inception has found seed and early stage capital for over 450+ young companies from 10k to $12.SM. For more information see our GOA website at www.gatheringofangels.com or contact CEO and Founder Tarby Bryant 404-606-2193