ask an angel: how to attract angel investors with crowdfunding campaigns
DESCRIPTION
Since the signing of the JOBS Act in April 2012, there has been a lot of speculation as to how the angel and VC community will participate in crowdfunding and view businesses possessing heavily populated cap tables. In this webinar presentation which was delivered on May 1, 2013, Chris Camillo, an accomplished angel investor, author of Laughing at Wall Street and one of the country’s top crowdfunding industry analysts shows entrepreneurs how to obtain angel investors during and after crowdfunding campaigns. To view the recording, please visit: https://www.brighttalk.com/webcast/9407/72507TRANSCRIPT
Crowdfunding – Investing in what you KNOW!
“Your investor's edge is not something you get from Wall Street experts. It's something you already have. You can outperform the experts if you use your edge by investing in companies or industries you already understand.”
– Peter Lynch
“Every investor deserves the right to invest in what the “know” whether or not that opportunity is in the form of a startup or a publicly-traded large cap”
– Chris Camillo
NowStreet’s Capitalizing on Financial Innovation Webinar Series
Webinar: Ask an Angel: How to attract angel investors with crowdfunding campaigns
May 1st - 1pm to 145pm EST
Since the signing of the JOBS Act in April 2012, there has been a lot of speculation as to how the angel and VC community will participate in crowdfunding and view businesses possessing heavily populated cap tables. Chris Camillo, an accomplished angel investor, author of Laughing at Wall Street and one of the country’s top crowdfunding industry analysts will show issuers how to obtain angel investors during and after crowdfunding campaigns. This webinar is ideal for any company seeking to raise capital via the forthcoming crowdfund exemption as well as any professional guiding new crowdfund issuers such as investment bankers, investor-relations professionals, brokers, emerging portals, CPAs and attorneys.
2009 Foot Joy AQL Golf Shoe
In 2009 TRUE linkswear, with 2 employees, started a revolution in the golf shoe industry when it built the
original barefoot golf shoe.
3 years and 100,000+ customers later TRUE became the first ever golf shoe to win a PGA tour event and
complete a marathon on the same day.
Should you fail to raise startup capital it is likely because:
You did not properly vet your idea
The perception among investors is that you are not capable of delivering on your vision
You are asking the wrong people for money
Defining Angel Investing
Angel Investing is
About People & Ideas
Angel Investing is not
About Pro Forma Financial Analysis & Valuation Models
Defining Crowdfunding
Crowdfunding is
Social Investing
Crowdfunding is not
Friends and Family
3 commonalities among entrepreneurs who attract early stage investors
1) Entrepreneurs who attract early stage investors:
UNDERSTAND
What excites early stage investors
KNOW HOW TO
Deliver on their expectations
2) Entrepreneurs who attract early stage investors:
UNDERSTAND
What frightens early stage investors
KNOW HOW TO
Mitigate the perception of risk
3) Entrepreneurs who attract early stage investors:
TAKE THE TIME TO
Seek out the ideal investors for their venture. These are people who “get” and appreciate their idea.
What excites early stage investors?
Sharing specialized knowledge and expertise
Collaborating with big thinking, committed entrepreneurs
The opportunity to re-engage in the culture of innovation as an integral part of a winning team
Potential to earn a 10x to 50x return on investment
What frightens early stage investors?
Aligning themselves with losing ideas
Company founders they perceive to be either: incompetent
untrustworthy
uncommitted
Apathetic
Unlikable
To a lesser degree - losing money
Pivotal early stages of the startup
Ideation
Traditional due diligence / self vetting
Business modeling
Business formation
Crowd vetting and funding Perks based campaign Equity / debt based campaign
Early stage accredited investor funding
How crowdfunding can mitigate the perception of risk
How early stage investors view risk
Market risk: Is there a significant unmet consumer need and a sizable potential market?
Execution risk: Does the Management Team possess the experience, skills, and desire required to execute on their vision?
Mitigate Market Risk with Crowdfunding
Mitigate Execution Risk with Crowdfunding
Teachers /Coaches
Occupational Supervisors /
Colleagues
Current / Past Classmates
Past Classmates
Community /Social
Network
Community /Social
Network
Hypothetical Investment Pitch
A young commercial real estate executive / entrepreneur with zero manufacturing or retail experience pitches you a business idea for a new product.
The idea is for a minimalist wallet that “holds everything you need and nothing more.”
The thin elastic wallet will hold 5 credit cards, 5 bills of currency, and a single house or car key. It will also strap to your cell phone.
He is seeking an investment of $10,000 to manufacture the Wallet.
Good or bad investment?
13,318 Backers $269,041 pledged of $10,000 goal
KICKSTARTER CAMPAIGN http://kck.st/ZyuNUb
Finding investors that “get” your business
Bankers vs. operators and the emergence of
micro specialization in early stage investing
Angel List (https://angel. Co/)
Crowd money may just be the “smartest” money
