Angel Investors for Young Companies seeking Capital

Angel Capital

The Gathering Of Angels is an Angel Investor Forum where 6 companies present with PowerPoint for 20 minutes each followed by 2-5 minutes of Questions & Answers. Accredited Angel Investors, VCs and Investment Bankers attend our events complementary.  

Each GOA presenter pays $2500 presentation fee with no % of angel capital raised. Included in the GOA presentation fee is 3 hours of virtual coaching, mentoring and consulting from GOA CEO Tarby Bryant to insure that your presentation is clear, concise and defensible.

We also provide coaching on capital & corporate structure, valuation, cost of funds, exit strategies, mgt. Team and other presentational enhancements to your PowerPoint efforts. We helped 17 young companies find capital in 2006 and have 10 success stories in 2007 YTD.



Tarby Bryant - CEO
Sweetwater Capital

We are your source for angel capital, seed and early stage capital, start-up capital, venture capital, and first round financing.

The Gathering of Angels is a monthly meeting of private, high net-worth Angel Investors, also referred to as "Angels," venture capitalists and merchant bankers. The event is hosted by Tarby Bryant, Chairman of the Sweetwater Capital Corporation. The mission of the Gathering of Angels is to provide first stage "seed level and angel capital" financing to startup and early stage firms.

What is an Angel Investor? 
Do you need Angel Capital?

             

             

Attn: All Golfers
On May 27, 2008, we will host a GOA Golf Outing at the Frog Golf Club......12:30 lunch and 1:30-1:40 and 1:50 tee times......cost for 18 holes and cart is $27.00...... 

RSVP now if interested in joining us for Fazio golf and drinks after at the Frog.......We also need your USGA handicap.....

Images from the Atlanta GOA Golf Outing
 

Angel Groups optimistic about 2008

March 6, 2008

WASHINGTON—Angel group leaders expressed optimism about the climate for investments in early-stage businesses in 2008 in a recent survey by the Angel Capital Association (ACA). This optimism comes despite the slowdown of the US economy and follows a year in which investment activity stayed level with 2006. 

In the Angel Group Confidence Report of North American angel group leaders, ACA member angel group leaders predicted that the quantity and quality of entrepreneurial investment proposals will increase in 2008 and that the number and amount of investments they anticipate making will grow slightly this year. 

The survey was completed by a majority of ACA member groups and respondents are located in 37 American states and Canadian provinces. 

“These predictions may indicate that sophisticated angel groups and perhaps other private investors have different reactions to economic challenges than public markets,” said John May, chairman of ACA and co-manager of the Washington Dinner Club in Washington, DC. “We have found that new entrepreneurial opportunities can arise in turbulent times like these.” 

Angel investors are high net-worth individuals who make equity investments in entrepreneurial businesses, and angel groups are formed when individuals join together to evaluate investment opportunities and make investments. Currently, there are about 275 angel groups operating in the United States and Canada, an increase of 65 percent since 1999. 

Predictions for 2008 

Not only do nearly half of angel organizations expect deal flow to improve in both quantity and quality this year, but they expect investment activity to continue at the same level or increase somewhat this year over 2007. 

Nearly 55 percent of the respondents said that the number of investments and total dollars invested will increase this year, with another 32 percent believing that the activity would be the same as 2007. 

All angel group leaders predicted that their group would invest in a new company in 2008 — with 81 percent planning to invest in three to nine companies. Most impressively, twelve percent think they will invest in ten or more companies. 

Predictions for positive exits were not as rosy. Fifty eight percent of responding angel group leaders did not think there would be any visible change in opportunities for acquisitions of their portfolio companies or Initial Public Offerings this year, after fewer angel groups experienced positive exits in 2007 compared to the previous year. Another 17 percent predicted a decrease in exit activity. 

John Huston, ACA Board member and founder of the Ohio Tech Angels in Columbus, Ohio notes that the two different predictions may fit together. 

“Angel organizations may be betting on economic growth in the long-term for strong exits in the future while also are seeing an increase in the number of high quality entrepreneurs pitching for investment. When you add supportive state policies to develop entrepreneurial talent and grow the amount of capital available in different parts of the country, there are great opportunities for angel group investments in 2008.” 

In follow-up interviews of its members, ACA did find that some groups are concerned that their capacity for investment may be reduced if problems continue in the public stock markets. 

Many angels have investments in corporate stocks and may lose some liquidity, and therefore will have reduced ability to make angel investments, if the public markets don’t grow this year. These concerns were factored into the 2008 predictions, but the strength of deal flow appears to have led to the generally optimistic forecast. 

2007 Angel Group Investment Activity 

ACA angel investment groups made an average of 7.3 investments in 2007, with average total funding of $1.94 million. 

These numbers are similar the numbers that angel groups reported in 2006, in which they invested an average of $1.78 million in 7.4 deals. The average size of an investment per round for a group was $265,926 in 2007. 

Co-investment was a key component of angel group activity in 2006: Two-thirds of the reporting groups noted that their portfolio companies received investment from venture capital firms, either as co-investment in the same round or as follow-on funding as the entrepreneurial ventures grew. In addition, 65 percent of the respondents reported co-investing with other angel groups in the same early-stage firm, allowing for larger overall investments in promising companies. 

Investment Preferences 

By a considerable margin, the reporting angel groups prefer to invest in seed and start-up companies (81 percent) and early-stage firms (85 percent), than they do in expansion (38 percent) and later stage companies (6 percent). 

This focus complements venture capital, which currently invests mostly in growth and expansion-stage opportunities. 

The groups expect little change to the stage of companies in which they will invest in 2008. Additionally, the groups also provided follow-on funding for their portfolio companies – an average of three of angel groups’ 7.3 deals in 2007 were follow-on investments in portfolio companies. 

Angel group leaders expressed interest in a wide variety of industries in the survey. Five industry areas were of particular interest: 

  • Software (83 percent) 

  • Medical Devices (75 percent) 

  • Industrial/Energy – including “clean tech” (64 percent) 

  • Business Products and Services (64 percent) 

  • IT Services (63 percent)

Few angel groups specialize in a particular industry area, and most have interests and expertise among their member investors in a variety of other areas. Five other industry areas were preferred by 50 percent or more of the responding angel groups, including: Biotechnology; Consumer Products and Services, Electronics and Instrumentation; Healthcare Services; IT Services; and, Networking and Equipment. 

The industry preferences are slightly different than in 2006, when the Medical Device category had the highest level of interest. 

Based on the survey and additional anecdotal evidence, the area of greatest growth is clean tech, which attracts interests from ACA members across the continent and is also the subject of a few new angel organizations that were formed in 2007 or 2008. 

The full report, including additional survey results and demographics, is available at www.angelcapitalassociation.org/dir_about/news.aspx.

 

Angel Investor Update-2007 

Angel Investors were very active in 2007 as observed by Tarby Bryant, CEO of The Gathering of Angels, a nationwide Angel Forum.  In 2007, 15 young companies were funded by attending Angel Investors at the monthly meetings of GOA across USA. Software, medical device, internet, niche product offerings and aggregations were successful in attracting capital. Required for successful funding of their companies was a very tight 1-2-3 page executive summary, a powerful 15-20 slide PowerPoint Presentation and tenacious follow up of all interested parties after the GOA meetings of interested Angels.  Funding normally occurs 1-10 days after the GOA event and in 2007 ranged from 50k to 1.5M in seed and early stage capital injected into the presenting company. 

Angel Investors who will write checks to young companies seeking seed and early stage capital are everywhere and Gathering of Angels provides a monthly gathering venue for them to come together and hear for companies from all over the USA who travel to the GOA venue. Practice sessions occur in the afternoon before the GOA event which begins at 5pm with wine, soft drinks and a light supper.  Interested Angel Investors and capital seeking Entrepreneurs will often have dinner together that night or breakfast or coffee the next day if investment interest is keen. Most Angels will review the ex summary, listen to the PowerPoint presentation, ask questions in the Q&A session and then read the full business plan and do limited due diligence before making the investment decision. Most Angel checks are 50k, 75k or 100k with one 250k check written in 2007. 

For more information on Angel Investors and The Gathering of Angels, visit www.gatheringofangels.com

Read about the Gathering of Angels in the Small Business Review.  The Gathering of Angels is an important source of Angel Capital, Venture Capital and Seed money for businesses.

Excerpt from the article.

"Knight attended Gathering of Angels’ monthly meetings in which the organization brings together 20 to 40 high net worth investment seekers. To stimulate interest and confidence in his business he provided financial documents and gave a PowerPoint presentation detailing the current state of operations and future plans for future growth. In turn, investors queried him regarding his background, track record, revenue and profits and qualifications for capital."
 Continue Story

Is Angel Capital or Venture Capital best for your immediate Capital Needs?

Entrepreneurs know they need capital to expand their respective businesses and add inventory or add staff to handle new channels of distribution.  Our banks often are unprepared to handle this need and equity capital is required to take the firm to the next level. For capital needs from $100,000 to 1.5M, I suggest Angel Investors over a Venture Capital Firm whose funding normally starts at 5M. Angels normally write checks from 50k to 1.5M and often go together with the Entrepreneur and join his/her Board of Advisors or even Board of Directors. Angel Investors are also a lot faster in their decision time from first introduction to writing a check is normally 1-15 days following reading the business plan, making a few calls to confirm markets, mgt team and valuation issues.  

Angel Investors at the Gathering of Angels come together monthly in different cities like Santa Fe, Atlanta , Hilton Head SC  and Scottsdale and listen to 4-6 young companies present for 20 min each with PowerPoint + 2-5 min of Q&A. The Angels listen to the presentations, read and evaluate the 1-2 page executive summary and if interested, ask for full business plans to review, do limited background checks and talk to informed friends and advisors and then decide to invest or to pass. 

What the Angel Investor gets in exchange for his/her capital investment is a function of the valuation of the young company. Valuation is a measurable science even for a pre-revenue company and is the real art of Angel Investing and proper distribution of equity interest in the young company.

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Angel Investors are really “Value Added Investors”

You have funded your start-up company yourself from idea to first customer and drained all your savings ,401k plans and retirement nest egg to bring your great idea into reality. Your family and circle of friends have been supportive but not financially. Now is the time to seek out Angel Investors who your currently do not know and present your business plan, executive summary and 15-20 slide PowerPoint presentation to Angel groups across the country. Angel Investors reside in big cities and resort/retirement communities across the USA and will, myth not withstanding, invest out of their local area into companies with great potential, huge untapped markets, strong management teams, clear exit strategies and reasonable valuations.

Once you commit to raise that needed seed and early stage capital that will range from $50,000 to 1.5 Million, you need to present early and often to Angel Groups, Angel Clubs and Angel Forums across USA. What you get from Angel Investors will surprise you.

Angel Investors are “Value Added Investors” and often unlike friends and family, they bring more than just money to the table. Angel Investors can indeed bring needed capital but also industry expertise, large contact bases and often that “Golden Roladex” or data base of industry contacts, seasoned experience in corporate America, coaching skills, interest in serving on your Board of Advisors or even your Board of Directors, filling interim gaps on your management team like CFO, CTO, COO or even CEO if you are the mad scientist or geek and not the ultimate CEO.

Finding an Angel Investor for your start-up company is good for you as the Entrepreneur but also for the Angel Investor. He/she puts in needed capital for a piece of common stork equity and a chance to invest in the next Microsoft, Google, UTube or FaceBook but also this is an opportunity to live the start-up dream and get mental and visceral satisfaction by genuine contribution to your success. The Angel Investor gets to use his/her brain, capital, contacts and expertise to make you a successful venture. This is truly a “Win-Win” for both parties, so pick your Angel Investor wisely and their contribution could be huge.

Seasoned Angel Investors can assist you in realizing your dreams as they can provide much more than just seed capital.

Time to start your search for your Angel Investor! 

Tarby Bryant, CEO of The Gathering of Angels
www.gatheringofangels.com

Gathering of Angels 2007 Fundings

  1. Vanguard Mortgage & Title-Denver-more capital from Atlanta Angel

  2. Feel Golf-Monterey CA-company gets capital from Santa Fe Angel

  3. Three Dog Bakery-Albuquerque NM-company gets capital from Santa Fe Angel

  4. Solar Breeze-Phoenix AZ-75K in seed capital from Santa Fe Angel

  5. ViajaTravel- Mexico-Mexico centric online travel agency gets 100k in capital from Santa Fe Angel

  6. Nextronics-Austin TX-Santa Fe Investment Banker provides capital

  7. Rubber Recycling- SC based used tire recycler gets capital from SC based investment Banker

  8. Children’s Education Network-Austin based software company is acquired by Excite Learning

  9. AOI Medical-Atlanta based back pain company goes public on London Stock Exchange for 16M

  10. Centurion Investment Partners-Memphis based Mutual Fund raises capital from Santa Fe Angel

  11. Green Panel Corporation-Prescott AZ-Joe Burton , CEO-Santa Fe Angel facilitates large capital pool for green construction company.

Gathering of Angels 2006 Fundings

1.     Nirvana-Scott Shickler-770-330-0733-Atlanta fast casual restaurant gets $$$ from 2 Atlanta Angels.

2.     True North Technologies-Doug Nassaur-678-634-0040—200k from Charlotte Angel (Software as a service)

3.     Clearwave Corporation-Gerard White-678-738-1137—Capital from a Columbia Angel( Medical  Kiosks for Doctors and Dentists Offices)

4.     Learning Enhancement Corporation- Roger Stark-312-239-2186-100k in Capital from Charlotte Angel ( Early childhood software)

5.     Genziko--Capital from Atlanta Angels

6.     Nextronics-Spencer Brown-254-776-2632—Capital from Austin TX Angels ( Fuel efficient engines)

7.     Advocate MD-100k from Austin Angels( Medical malpractice insurance)

8.     Mother’s Delight-Atlanta Angel provided bridge capital and management guidance (Shrimp & Crab retail food products)

9.     HyperWerx--Santa Fe Angel provided 300k in seed capital and guidance. (Operating System for Super & Hyper computers)

10.   Boron Holdings--VC fund provided media credits and funding.( auto additive for efficiency and cost savings)

11.   Renew Refinishing-Atlanta Angels provide capital.

12.   East-West Development-Atlanta Angels provide capital.

13.   Frontline Promotion Products—Atlanta Angels provide capital (Auto Dealer promotions)

14.   Women’s Celebration-—Atlanta Angels provide capital. ( Womens’ magazine)

15.   Premise Media Corporation-Logan Craft—505-982-9355—Santa Fe Angel provides capital-( DVD and movie on Intelligent Design)

16.   Dre Allen Project-LA record company-200k from Santa Fe Angels

 

Gathering of Angels 2005 Fundings

  1. International Exploration Corporation-Ken Juno, CEO-Capital from JAX Angels

  2. Kudzu Interactive-Jim Garrett, CEO-404-754-8754-250k from Atlanta Angel

  3. Diamics-Peter Gombrich-415-883-0414-Capital from 3 Santa Fe Angels

  4. Hyper-Werx-Will Braswell, President-Capital from Santa Fe Angel

  5. Rainbow Vision Santa Fe-Joy Silver-Capital from Santa Fe Angel

  6. Continental Divide Services-Don Howard-719-658-2682-Capital from Santa Fe Angels

  7. Serometrix-Jim Cappon, CEO-315-447-9424-100k in capital from Atlanta Angel.

  8. AOI Medical-John Feltman, CEO-Atlanta -404-931-6247-capital from Santa Fe Angel  and Angel joined Advisory Board of company

 

Angel capital fills the gap in start-up financing between the "three F"s (friends, family, and fools) of seed capital, and venture capital. While it is usually difficult to raise more than US$100,000 - US$200,000 from friends and family, most traditional venture capital funds are usually not able to consider investments under US$1 - 2 million. Thus, angel investment is a common second round of financing for high-growth start-ups, and accounts in total for almost as much money invested annually as all venture capital funds combined.
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THE ENTREPRENEUR
A new video series featuring interviews with hot new companies.

ONLINE PRESENTATIONS
1. 1-2-3 page ex summary
2. 15-20 slide PowerPoint
3. Picture of CEO and his CV
4. Full contact information
5. Management Team briefs + Pictures
Click Here for more information

2006 Statistics

  • 126 young companies presented at GOA Meetings.
     

  • 17 companies got some level of capital funding.
     

  • 37 Gathering of Angels meetings in 8 different cities.
     

  • $$$ Capital fundings ranged from 50k to 1.5 million.
 

Testimonial

Tarby,

On behalf of our shareholders and employees, I wanted to personally thank you for the support you provided to Clearwave.  Clearwave was able to successfully raise money because of your coaching, focus and determination.  There are not many avenues in which small companies like Clearwave can raise money; however, you provide a vehicle that allows it to happen quickly.  Thanks again, and our team will always consider you a great partner.

Regards, 

Gerard White
CEO, Clearwave Corp.

 

Useful Links

What is the Gathering of Angels?
 Visit the new Virtual Gathering of Angels

Click here to read the
 GOA Executive Summary

Click here to be a GOA Presenter

Contact Tarby Bryant
Call Today 505-982-3050

Ten Tips to Appeal to Angel Investors

  1. You should understand that private equity is a class of investment, and that most early stage entrepreneurs are better suited for investment from private investors ("angels"), than from professional venture capital partnerships.
     

  2. You should create a business plan that emphasizes your sustainable competitive advantage.
     

  3. You should accept the fact that having "a good idea" is often not enough to raise capital from private investors, and you should do your homework to provide "proof of concept" for your venture.
     

  4. You should understand that raising capital requires an expenditure of capital.
     

  5. You should identify and contact angels who are suitable for you.
     

  6. You should recognize that industry experience is valuable and important to angel investors.
     

  7. You should recognize that raising capital takes time.
     

  8. You should recognize that angels are "value-added investors."
     

  9. You should never stop looking for additional angel investors until all checks from interested parties have cleared the bank.
     

  10. You should invest your own money in your venture.

Courtesy of TriCities Private Investor Network

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