Can I say that the best way to find Angel $ is through contacts. 2-3 Degrees. We raised about 500K late last year through a contact who is an accountant. You need to find these types of people who look after high net worth indivuals and these investments. There are loads of them out there, just have to mix in the right circles. If you need any help, let me know. You have to have your stuff in order. Business Plan. Projections. B.E. Marketing Strategy. A product that is nearly done. We spent about 2 years building our product and it was about 90% complete before we were successful in raising capital.
I was quite fortunate to have a damn outstanding developer whom I formed a partnership with in the early days. What he did with our platform really wowed the Angels. I might also ad, detailed market IP/Knowledge is also critial. Without this you will not be able to tell a story that is complelling. As I said, am here to help. Cheers, Mathew On Wed, Sep 15, 2010 at 11:59 AM, David Jones <[email protected]> wrote: > Its all been said but few points.... > > 1. Marko hits it on the head - OZ startups are are historically > lean/emaciated - As Matt says web businesses at least can . Hats off if you > have the business model sorted and funding is supporting scale. (assuming > your business is a web business) > > 2. The good news is there is an angel bubble - I don't know how long it > will last or whether the tide has risen much in OZ as opposed to US. Sure > its smaller...that leads to point #2. Point is, now if probably a good time. > > 3. its a numbers game, regardless of angels or VCs there are many non-you > reasons why they say "no"*: > > - wrong market segment > - wrong stage of company > - processing another deal > - wrong stage of fund > - or a myriad other reasons. (The "you" reasons: team, market size, > competition, bad idea, personal hygiene etc) > > So assume your odds (as Mark said 1-10%). Thats not cause for whinging - it > just means you see a lot of cafes. It hubris to think meeting 3 folk will > close a deal - it happens but rarely. Yes, its true there are few early > stage VCs - hence the recommendations for angel. > > (*or often the response is "really intriguing - perhaps when you are a > little further along - keep us updated". There is a few reasons for this.) > > 4. Most importantly, if you are raising, then make sure you continue to > execute on the business - so-called "traction". When you go back for 2nd, > 3rd meeting, then update them on differential progress since last time on > metrics that matter (registrations, uniques, transactions, revenue etc) > > cheers > d. > > On Tue, Sep 14, 2010 at 12:37 PM, Marko <[email protected]> wrote: > >> Hi guys, >> >> great discussion! >> >> As an entrepreneur who's about to start looking for angel money, all I >> can say is, less crying and more doing. >> >> We are in a privileged position here where we HAVE to focus on revenue >> early in the game and create business models that actually work. >> Talking to my peers in the US I get a feeling that since there is a >> lot more money over there, they are a bit more chilled out about >> creating viable business models that have a realistic revenue stream. >> It's true that for the Twitters of this world this is the right >> approach, but I believe that most businesses can generate revenue >> before they create a massive user base. >> >> Bootstrapping and squeezing out the most out of very limited resources >> can be very tough, but this helps build a culture of efficiency and >> sound business practices. It also brings people together and creates a >> stronger sense of camaraderie. We are all in it together fighting for >> the same goal and we have to trust and depend on each other as that's >> all we have. If a team can survive under these Spartan conditions and >> learn how to get the most out of what's available, then money will >> turn it into a formidable force. >> >> One sure way to kill a startup is having founders leave the company. >> If you were an investor, wouldn't you want to know that the team you >> are investing in can survive under tough conditions before you pour >> your hard earned money into it? >> >> We have to use the conditions around us to our benefit and if that >> means having to jump higher and dive deeper than everyone else, than >> be it. Investors will come along for a ride once they are convinced >> that you can create value. More early stage investment is becoming >> available and by boosting the image of Australian startups as >> resilient and robust operations, we'll for sure attract more money. >> >> Onwards and upwards I say. >> >> Cheers, >> Marko >> >> >> >> On Sep 14, 10:41 am, "Mick Liubinskas (Pollenizer)" >> <[email protected]> wrote: >> > Thanks for the post Renai. It's a good question and there are some >> > great answers here. >> > >> > I'll summarise my point by saying yes and no. >> > >> > Yes, there is a VC funding here in Australia. >> > >> > No, it's not particularly relevant for early stage web businesses, >> > which a lot of Silicon Beach is about - or is that just me? >> > >> > Matt's post is good as it shows where you need to be to be to get VC >> > funding. >> > >> > So the whinging is whinging to some degree, as people read Techcrunch >> > and think that VC money is how you do things. It may appear that way >> > but in reality there is a a lot more companies in the valley that >> > don't get VC funding than do. They are bombarded each year by >> > thousands of companies from around the world and each VC may fund 3-5 >> > each each year. >> > >> > What we need to be looking at is more seed and angel funding. This is >> > partly why Pollenizer is structured the way we are. We can expect big >> > cash without a working business, so we find a little bit of cash, stay >> > lean and get to validation. >> > >> > I've got no doubt the VC's in Australia will fund you - IF - you fit >> > their requirements and IF you want to take the money. >> > >> > For some quick stats, >> > * Of the more than 100 business that Pollenizer has worked with and >> > more than 500 that we have spoken to, only 2 have been VC funded. >> > Xumii (mid-sized project) and Mig33 (tiny project). >> > * Of the $5m we have raised for our portfolio companies, none of it >> > has come from VC's. Yes, it's a young portfolio and I expect some in >> > the next few years will look to VC's for expansion capital, but many >> > won't need it. >> > >> > The big part I agree with is the stop whinging and just do it. Ian >> > Cummings is a good example. He finds a way. It's hard, and requires >> > persistence - welcome to the job! >> > >> > Mick >> > >> > On Sep 14, 10:11 am, timparsons <[email protected]> wrote: >> > >> > > Nice post Matt - and thank heavens for Silicon Beach too I say :-) >> > >> > > On Sep 13, 8:26 pm, Matt <[email protected]> wrote: >> > >> > > > Hi Renai >> > >> > > > Thanks for the write up :) >> > >> > > > I was trying to find another early stage VC-fund investment in IT in >> > > > the past 6 months and found it very difficult. >> > >> > > > VC funding is not particularly sought after by typical web-based >> start- >> > > > ups these days for two key reasons: >> > >> > > > 1. I look to invest $1.0 - 3.0m in a Series A round, most start-ups >> > > > these days can get to cashflow positive on a lot less and that's >> where >> > > > the average entrepreneur is happy to either stop thinking about >> extra >> > > > capital ("I am cashflow positive already") or start believing in >> > > > valuations that would mean my $1-3m would not give me any >> substantial >> > > > stake in the business. >> > >> > > > 2. Our terms are very very tough compared to family and friends or >> > > > private equity or just about any other form of investment money. We >> > > > ensure very strong downside protection, which frankly is very off- >> > > > putting for many entrepreneurs >> > >> > > > Read VentureHacks to get an idea where VC sits in the cycle, you can >> > > > get a lot from Angels if you can find them, but a VC is mean to help >> > > > propel a business to the next level and should bring a lot more than >> > > > cash. I have sat on both sides of the table, I don;t pretend for an >> > > > instant that I can bring the networks or skills of the average >> Silicon >> > > > Valley VC but from little ol' Perth I can certainly help a business >> go >> > > > international for the first time. >> > >> > > > Agworld was an exception opportunity for us, great management, an >> > > > understanding of the value of VC and some great early traction with >> > > > customers built on the back of some serious sweat and real cash from >> > > > the founders. Hats off to them for seeing where Yuuwa could fit in >> > > > and giving us a chance >> > >> > > > Matt >> > > > Co-founder >> > > > Yuuwa Capital LP >> > >> > > > On Sep 13, 8:42 am, Renai LeMay <[email protected]> wrote: >> > >> > > > > Innovation Bay is constantly calling for people to come and pitch >> to >> > > > > them, and now this drops out of the 'sky' -- or should that be the >> > > > > 'Yuuwa'? ;) >> > >> > > > > Perth VC pumps $1.5m into agriculture IT startuphttp:// >> delimiter.com.au/2010/09/13/perth-vc-pumps-1-5m-into-agricultu... >> > >> > > > > I am beginning to suspect that the whinging about a lack of VC >> capital >> > > > > in Australia is just that ... whinging. >> > >> > > > > Thoughts? >> > >> > > > > Renai >> > > > > Publisher, Delimiter >> > >> > > > > PS I am heading to the next Innovation Bay dinner -- will be >> > > > > interesting to see what the sentiment is on the issue there. >> >> -- >> You received this message because you are subscribed to the Silicon Beach >> Australia mailing list. >> >> Guidelines on discussion: http://tr.im/ujKF >> >> No lurkers! It is expected that you introduce yourself: http://tr.im/ujMm >> >> To post to this group, send email to >> [email protected] >> To unsubscribe from this group, send email to >> [email protected]<silicon-beach-australia%[email protected]> >> For more options, visit this group at >> http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en >> > > -- > You received this message because you are subscribed to the Silicon Beach > Australia mailing list. > > Guidelines on discussion: http://tr.im/ujKF > > No lurkers! It is expected that you introduce yourself: http://tr.im/ujMm > > To post to this group, send email to > [email protected] > To unsubscribe from this group, send email to > [email protected]<silicon-beach-australia%[email protected]> > For more options, visit this group at > http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en -- Regards, Mathew French -- You received this message because you are subscribed to the Silicon Beach Australia mailing list. Guidelines on discussion: http://tr.im/ujKF No lurkers! It is expected that you introduce yourself: http://tr.im/ujMm To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en
