Super Angels
Published by Bob Foster
With IPO’s nearly shut down, and large Venture Capital firms wringing their hands over “Venture Capital’s Coming Collapse” (a January Forbes cover story), it is encouraging to see a new breed of “Super Angel” courting today’s startups. The June 1 issue of BusinessWeek carried an article (online version here) featuring this new funding phenomenon. Any entrepreneur looking for startup capital should read this article to see if there might be a fit.
Venture capital peaked in 2000 and total VC investment today is below 1998 levels. It has been 11 years since the industry has paid out more cash to investors than it has invested. Many VCs annual rate of return to their investors over this period was lower than the S&P 500 Index.
On the other hand, the Super Angel is smaller, quicker, and more interested in more things than their bigger, older VC brethren. They manage smaller funds and cater to the startup, with smaller investments. They have returned to the grass roots of the VC industry, with informal gatherings at the local pubs and eateries where new entrepreneurs gather to make short pitches to a Super Angel.
However, don’t forget: An entrepreneur needs to do their homework—and well! A short pitch (sans Power Point) requires a person to really know what they are talking about. They must be able to present an entirely new business idea succinctly and completely—in a matter of a few minutes.
Most of the Super Angels are also supplying more than money. One of these is Paul Graham and his new-concept VC firm, “Y Combinator.” Graham launched his firm in 2005 and has funded 145 startups to date.
Y Combinator is a hybrid venture capital firm and business training camp. Although Graham makes small investments (usually less than $25,000), he also provides advice, mentoring, technical help, and introductions to later-stage investors. He also periodically feeds his band of fledgling startup entrepreneurs.
So, the time for you to start a new business could be now…if you are properly prepared. Check out Super Angels on Google—then get yourself ready to pitch your new business. Today might be the day you have been waiting for.
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[...] main-stream sources of funding are joining the microfinacing arena. I have previously posted about Super Angels, Community Development Venture Capitalists (CDVC’s), Open Source Funding, and the shift by [...]
Dear Sir/Madam,
I represent Inam Credit Union of Azerbaijan. Our company was founded in 2008, so it can be classified as a startup. We have grown our portfolio up to 100K USD at the expense of membership shares.
We are a member of Azerbaijan Credit Union Association. Besides, we registered our company at Mixmaret (www.mixmarket.org), we are audited, having 3 diamond transparency level at MIX.
We are planning to grow our company at the expense of commercial loan to be taken from commercial debt investors no matter internationally or locally.
As you may know it is not that easy to attract borrowing for start ups. So, we look for a lender we could offer 100-200k for us. I wonder if we can work with you on getting loan from you or anyone recommended by you? We are quite strong one, even though we are small. We can take your loan with any condition, term, interest and pay back as agreed. The only thing is how to find debt investor. They either fund other sectors not financial institutions or they are brokers who need advance payment or they dont fund small birds like us…
Can you help with your loans or any advice please?
Look forward to hearing from you.
Best regards
Ulker Javadova
Inam CU CEO
Email: inam_cu@yahoo.com, ulker24@yahoo.com
Phone: +994503307182, +994503000401
Skype: inam.cu