RSS at Feed BurnerPassive vs Active Angel Investing
John Tozzi has a post on Business Week’s Small Biz blog regarding the trend of an increase in angel funds. I think one reason for this trend is a result of some angel investors who are excited by the idea of investing in startups, but are not able to dedicate the time to be an active angel investor.
Angel investment networks had a larger growth period a few years ago, whereas previously, individuals dominated angel funding and invested on their own (or with a small number of other people). It may be possible that many of these angel investors were more interested in the investing part than they were interested in other aspects of angel investing such as being “smart money” where the angel investors provide a large amount of advice and guidance. In addition, many angels would prefer to let others do the screening, due diligence, negotiations, and other work associated with getting a deal done.
on November 12th, 2009 at 1:46 pm
Hi Brant - interesting post.
What we’ve seen in the UK is a large level of interest - ie. joining the networks in 08 and 09, but not much follow through.
I’ve seen attendence dropping off at since the summer - almost as if those that were looking for opportunities in the first part of the year have decided not to bother in the second half of the year.
Regards
Neil
on November 12th, 2009 at 3:18 pm
I live in the Caribbean and am keen to develop a very intimate, eco-friendly B&B, the first of its kind on this island. As such, I would like to see some advice on working with The Angel Investment Network, who owns sites such as www.angelinvestmentnetwork.ca, www.caribbeaninvestmentnetwork.com, and www.angelinvestmentnetwork.co.uk.
We paid a fee to join this network. Within seconds of them charging our credit card, we were sent 2 potential angel investor contacts. It has been over 60 days and their “contacts” are highly unprofessional and upon contacting them, they ask for more and more money fees. We have nevery paid another dime since the initial fee of US$250. I would simply like to know who protects the entrepreneurs from getting ‘tricked’ by these seemingly professional and reputable companies, who apparently are getting away with a major scam. When I asked the Angel Investment “managers” - by email - to allow a successful entrepreneur who achieved funding through them to contact me so we could discuss his/her experience, I never received a reply. That was 40 days ago. Who can we report these scammers to?
on February 21st, 2010 at 9:58 pm
Hi JC,
I am the director of the Caribbean Investment Network and was very surprised to read your posting. According to our records, we received 3 emails from you, all of which were answered within 24 hours:
1) Saying that you had submitted your proposal and asking when it would be approved.
2) Asking us to correct a mistake in your proposal
3) Asking how you gain access to the investors’ contact details.
Unfortunately, we did not receive your email asking for a reference, so I apologise you didn’t receive a reply. If you’re still interested, we have a case study at www.angelinvestmentnetwork.co.uk/testimonials/215.
Please do get in touch if you have any questions or need any help.
Best wishes,
Mike Lebus
Caribbean Investment Network
www.caribbeaninvestmentnetwork.com
“Connecting Entrepreneurs and Angel Investors”
on March 14th, 2010 at 6:08 am
These tips are so true