There is so much discussion and knashing of teeth about the void of angel investors in the market right now. Frankly, I think it is a convenient excuse for those investors that weren’t actively investing in 2008 and therefore continuing to not invest in 2009, but were still “in the game” attending events, considering deals, requesting business plans, but ultimately being an empty suit. We saw this a lot right after the dot.com burst. It took probably a year and half before those “walking dead” finally faded away or got to the point of making an investment. Unfortunately, you can never really know who these decoy investors are (see my blog on that topic on www.entrepreneurblogspace.com) until you have fully engaged and wasted time and probably some money with them. Likewise, a company that is struggling to raise capital, but has a fundamental flaw that they are unwilling to address, either out of arrogance or ignorance, can use the current economic climate as their excuse…”oh woe is me, nobody wants to invest, boo hoo, because the economy is bad!” We talked about the available capital in my radio interview yesterday with Bank President, Chuck Lewis of One Georgia Bank and Angel Investor and Fund Manager, Ian Adlington of Newport Capital and the Kereitsu Forum. These gentlemen are two of the panelists will be kicking off the second day of events at the SE Private Equity & Capital Conference (SPEC) on April 14th & 15th…..hurry if you are a company seeking capital or investors seeking innovative companies to consider investment with.
Some Highlights of Positive Indicators in the Angel Capital Markets:
Angel investments dropped in 2008 by 26.2 percent over 2007, but the number of deals was relatively unchanged, with 55,480 entrepreneurial ventures receiving funding, according to the 2008 Angel Market Analysis released by the Center for Venture Research at the University of New Hampshire. Full Report: http://www.newswise.com/articles/view/550514/
Also Angelsoft, as the software used by hundreds of angel investor groups, keeps excellent statistics on trends. http://angelsoft.net/industry/index.seam We have been hearing of companies getting funding in odd places…mid west, southwest, of course the west coast. Although the due diligence process may have taken a few more months than usual, they still closed on funding when the regular capital markets and stock markets were at their all time worst. Just take a look at this impressive list: http://angelsoft.net/funding-stories/
This news in encouraging to us. It should be encouraging to entrepreneurs out there seeking capital….good companies with good business models and good management team, and appropriate valuations, get funding. We are more committed than ever to make the upcoming SE Private Equity & Capital Conference (SPEC) more successful than ever with exciting innovative companies on the agenda and a convergence of angel investors, VC, fund managers, and investment bankers from accross the US. We believe we can be Economic Architects by creating a rich environment for deals to get done, jobs to be created, and delivering innovation and wealth to the market.