I am live blogging at the TAG/ATDC Entrepreneurs Society meeting. Lots of aspiring entrepreneurs, successful entrepreneurs, and investors are in the room. Literally standing room only.
Knox Massey, executive director of Atlanta Technology Angels, and recently featured on WSJ.com, is the draw. His topic is “The (Not So) Puzzling Behavior of Angel Investors”.
I find it very interesting Knox says that lots of folks don’t understand that angels expect to get their money back and a return.
The ATA was founded in 1998 with four goals in mind:
1. create wealth;
2. mentor entrepreneurs;
3. create world-class companies;
4. bring outside Atlanta institutional capital to Atlanta .
ATA is a pledge group that typically invests $250k – $750k in each deal and invest $2 – $4 million annually. They have funded 36 companies since inception and have 16 companies in their current portfolio.
Knox has four simple suggestions for entrepreneurs.
Start early. Don’t come to an angel with a package wrapped in a bow. Angels want to have an impact.
Research. Know where the angel or angel group is before you approach them.
Be patient. 30 – 90 days at least to get a deal done.
Realize this is long term. Like any partnership good chemistry is very important
Communicate post investment. Every other month early on and once a quarter after that. If you don’t it is always taken as a bad sign.
A powerhouse panel including Clark Gilder, Jeff Leavitt, Allen Graber, and Mitch Free is taking its seats.
Mitch is telling the telling the story about how Jeff Bezos came to invest in MFG.com. Funny guy, Mitch, not Jeff.
Clark, with the voice of god, is talking about the investment in Invirtus and his quite speedy exit.
Jeff believes that ATA, like ATDC, gives a company cred. Also says that average time to exit is six to seven years. He also made a reference to F round stock, something to look into as an instrument for the early money.
Allen is the shyest entrepreneur/investor I have ever seen in the front of a room. He does not think of himself as an angel, he is a seed investor.
Big don’ts. Clark: Spending the money on sales and marketing. Allen: entrepreneurs that want to have the same salary that they are making at their corporate gig. Jeff: treating investors as adversaries.
End of session.
Publish now