Angel Investing

By: Marianne Hudson, ACA Executive Director

One of the most important and effective things ACA does for our members is to represent you in Washington, DC. We do this to ensure you have the best possible environment to invest in and support interesting entrepreneurs.  This gives you the best possible chance to enjoy your angel experience and to help wonderful companies exit, leading to good returns for you.

Sometimes our work is aimed at creating new tax benefits or legislation allowing more investors in a fund, but other times our work is truly “do no harm.”  In fact, over the last eight years, our main public policy work has focused on ensuring the definition of accredited investor is not changed in a way that cuts the number of angels in half.  The Securities and Exchange Commission (SEC) is lobbied all the time to raise the thresholds for net worth and income by inflation beginning in the 1980s, more than doubling the $1 million and $200,000 requirements.  Our past research with ACA members showed more than 30 percent of us would no longer be angel investors if that happened.  That’s what I call “existential!”

By Linda Smith, ACA Chair

Auckland’s ICE Angels are awesome!  As soon as you step into their innovation center (called the ICE House) which was previously a textile mill, the vibe is palpable.  Young entrepreneurs are collaborating in one corner, an  executive MBA program is housed within the facility, planning is proceeding for the next Innovation Showcase, an in-house Accelerator is over-subscribed, and one wall is completely covered with the logos of the more than 126 companies in the ICE Angels portfolio.

 This Auckland group of over 160 members has invested more than $80 million since its founding in 2003.  A lot of the dynamism behind ICE Angels is due to to Robbie Paul, the Chief Operating Officer for ICE Angels.  Robbie brims with enthusiasm as he talks about young companies like Crimson Consulting (helping secure admissions to the best universities in the world, now valued at $200 million), and Sunfed  Meats (a product that tastes just like chicken but made with pea protein ).

By Linda Smith, ACA Chair

Sydney Angels celebrated a 50th anniversary, of sorts—since their founding in 2008 they have invested in over 50 start-ups.  I had the opportunity to meet with several of their Management Committee members including Richard Dale, Karen Farley, and Adrian Bunter while in the exciting city of Sydney, Australia.

During our conversations, Sydney Angels (SA) credited Tech Coast Angels and the Kauffman Foundation as reference models and trusted sources of information and educational content that was helpful to SA in its formative years.  They also praised the work of Rob Wiltbank and would welcome sharing data about angel investing, including the new ACA data strategies report being developed by Rick Timmins and the Data Strategies Task Force led by Steve Flaim.

By: Ethel Rubin, PhD, Entrepreneur-in-Residence, NIH Office of the Director Office of Extramural Research

Looking for a deal in your backyard? The NIH is the world's largest investor in early stage life sciences companies. Over 1000 companies annually tap into NIH’s SBIR and STTR program for nondilutive funding to the tune of $980M in FY17. Did you know the NIH maintains RePORTER, an online database, of all funded companies and projects? This link will take you to what's been funded this fiscal year, but you can query the database yourself to look for companies specific to your interests. There are over 25 different ways to search and visualize the data with built in analytics (click on the Data & Visualize to create graphs and more you can export directly to PowerPoint and Excel).

By Lucy Howell, ACA Director of Partnerships 

After a 20-year career in financial services, I joined the Angel Capital Association as director of partnerships exactly one year ago this month. Over the past year, I have met hundreds of angels, entrepreneurs, community development leaders, bankers, sponsors and policy makers interested in this critical niche. Angels are the biggest funders of high-growth new businesses, which created nearly all net new jobs in last 25 years. Yet, I am surprised by how little is known about this unique angel investing world. I thought it would be fun to recap my top 12 takeaways from the year to shed some light on this amazing group of people and the impacts angels have had, not only on me, but on their local ecosystems.  

By: Marianne Hudson, ACA Executive Director

Recently two articles caught my attention for calling attention to the importance of startups to national economies, with one particularly pointing out how key angel investors are.  Both writings point to how startups create jobs and innovations to our economy and they are the kinds of articles that Members of Congress and other policy makers read.  (That helps ACA make progress on Capitol Hill, trust me!)

Below are both articles with some excerpts so you get the general idea.  Check out the full articles too.

By: Ham Lord, Managing Director of Launchpad Venture Group and Co-Founder of Seraf-investor.com

This post originally appeared on Seraf-investor.com

This article is the first in an ongoing series on valuation and capitalization. To learn more about the financial mechanics of early stage investing, download this free eBook today Angel Investing by the Numbers: Valuation, Capitalization, Portfolio Construction and Startup Economics or purchase our books at Amazon.com.

In the sport of Major League Baseball, the greatest hitters are those who get a hit just one out of every three times at bat and a home run 5 or 6 times out of 100 at bats. In the world of startup company investing, the best-known investors are those who invest in the tiny percentage of companies that make it big. Think Facebook, Google or Amazon. If you invest in one of those enormously successful companies you will find your name in the equivalent of the Baseball Hall of Fame… it’s called the Forbes Midas List.  

By: Marianne Hudson, ACA Executive Director

I’ve been glued to media coverage of Hurricane Harvey and the devastation the storm and floods have caused in Texas and Louisiana, with thoughts of everyone in that region.  The photos and videos are so full of unbelievable stories and damage.  As I see the storm finally moving to other parts of the country, I think we angels should start using our innovative minds to supporting the region’s entrepreneurs, the innovation ecosystem, and indeed, some of our member investors.

By: Marianne Hudson, ACA Executive Director

It was with great enthusiasm that the Angel Capital Association honored Catherine Mott with the prestigious Hans Severiens Award at last week’s 2017 ACA Summit.  The Hans Severiens Award is presented annually to recognize one individual’s work in advancing the field of angel investing. Catherine is a great representative of the spirit of the award, with impacts ranging from developing and educating angel best practices to regulatory policy work to advocating for startups and helping expand the diversity of the angel investing community.

By: Marianne Hudson, ACA Executive Director

This post originally appeared on Forbes.com

On my mission to get smarter and smarter about angel investing, I think it’s important to read as much as I can from leading investors and experts in entrepreneurship.  There were some really great articles last year that made a difference to my own investing and thinking about trends and policies.  Here are 25 top articles that caught my attention in 2016.  I think they’re worth another read, or a first read in case you missed them.

Subscribe

Public Policy Quarterly: Summer 2024 by Angel Capital Association  on  June 28
ACA Announces Partnership with Thompson Hine by Angel Capital Association  on  June 24