Sunday, November 23, 2008

The Role of the Angel Investor (click here)

From the Tech Crunch 50 conference earlier this year.

Jason Calacanis (founder Weblogs, Inc sold to AOL) is the moderator for a panel that includes:

Ron Conway- (Uber Angel investor). Involved with, Google, Facebook, Paypal,AskJeeves etc.
David Kidder-(Clickable, where he raised $22mm). Also, works with companies to help them raise Angel and venture capital
Chris Sacca- (ex-Google employee) Twitter investor
Matt Coffin- (LowerMyBills), Mahalo,Demand Media etc.
Yossi Vardi- (ICQ co-founder), 'go to' Angel for Israeli consumer facing internet entrepreneurs

Highlights:

1. The only effective way to reach Angels (or VC's is via introduction). Cold pitches just don't work well.
2. Yossi is not interested in the business model as 'the more attractive the business model, the higher your losses will be'. He invests in people...
3. Investing local is important as unexpected issues happen that can best be dealt with 'over a few beers'.
4. A recognition that good is good enough, and that they will miss 'great' investments. A portfolio approach, across sectors, is an important first step, that leads to picking the best one's available in each sector. Perhaps a more disciplined 'spray and pray'.

Interesting that no one highlighted a drive for market leadership, innovation, or 'business model'. In fact, business plans were derided as a waste of precious time.
Just one of the many cultural differences between Angels and 'Pros'

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