Should Entrepreneurs Pay Angels?

Should entrepreneurs be asked to pay angels and angel groups for the opportunity to present their business?

As the seed stage/angel asset class becomes more prominent and popular, this becomes an ever more frequent question. There was a blow up about a year ago when Jason Calacanis took on the Keiretsu Forum and the amount they charged early stage companies. …
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Alliance of Angels Needs a New Managing Director

One of the good things about the steady success of the Alliance of Angels (www.allianceofangels.com) is the visibility it gives the Managing Director to virtually every deal in the Northwest. However, this also means that the AoA Managing Director is a highly sought-after professional. Our current managing director, Greg Huey, has decided to move on to become the …
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Severance – Oh No!

Many entrepreneurs, when they take outside money into their company, want to protect themselves. This is a perfectly reasonable thing to do.

The investors putting the first money into the deal also want some protection, especially when the founders own a vast majority of the overall stock and probably have a majority of the board seats.

One of the items …
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Seattle Alliance of Angels has a terrific 2010

The Seattle Alliance of Angels had a wonderful 2010. To quote the headline: Alliance of Angels Invests Record-high $10.3 Million in 2010; Group hits new milestone with investment in 33 Northwest-based startups; surpasses previous investment record by more than $1 million.

I was quoted:

“Once again, our angels have set a new standard for investing in innovative, young companies,” said …
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Modumetal – the ACA Innovative Company of the Year

Greetings from San Francisco, where I am attending the Angel Capital Association (ACA) annual meeting. This afternoon, the ACA introduced a new award named after Luis Villalobos, one of the nations’ most prominent angels and founder of the Tech Coast Angels, who unexpectedly died last Fall. I was asked to introduce Christina Lomasney, the Modumetal CEO. Here are my remarks …
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Dodd Bill to go to the full senate

As those who are following this topic know, the Senate Finance Committee moved Dodd’s Financial Reform bill out of committee without any amendments. This unusual move means that the three sections that might cripple angel financing remain in the bill. It becomes more critical than ever that we notify our senators of our adamant opposition to these sections that could …
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Startup Finance and Dodd Bill – follow up

On my last post, I referenced Scott Shane’s data. For those that haven’t read his book, The Illusions of Entrepreneurship: The Costly Myths That Entrepreneurs, Investors, and Policy Makers Live By (http://www.amazon.com/Illusions-Entrepreneurship-Costly-Entrepreneurs-Investors/dp/0300158564/ref=sr_1_1?ie=UTF8&s=books&qid=1269045575&sr=8-1) – it’s an important book for angel investors.

He has now published an article in Business Week that gives more detail on his insights and calculations …
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Taking Money from Entrepreneurs’ Pockets

In a previous posting/rant, I talked about Angel Groups that gouge entrepreneurs (http://blog.drosenassoc.com/?p=13). Some charge over $10,000 for the right to present and that steams me. However, I have not directed my wrath at another group that gouges entrepreneurs even more – brokers and small investment bankers. Note to entrepreneurs: Do Not Use a Broker (or small investment
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