local money marketplace pbc

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  • 23 Jun 2014 3:42 PM | Daniel Taylor (Administrator)

    Many angel investors have gone beyond simply making their money available to a startup business through an investment.  They have engaged in some level in the support of the business.  This engagement elevates their experience in making an investment and typically works to improve the success of the business.

    • Acting as a member of the board of directors
    • Acting as a member of an advisory board
    • Consulting
    • Acting as a sales representative
    • Introducing business to prospective employees, contractors, vendors and customers
    • Endorsing the business
    • Sharing information
    • Mentoring an officer in the business
    • Editing promotional and marketing materials
    • Critique pitch deck
    • Inviting business team as guests to events in which you are a member
    • Sponsor membership in groups in which you are a member
    • Working in a trade show exhibit
    • Arranging speaking engagements for business team
    • Serving as a test customer, test bed or other demonstration of product or service
    • ‘Like’ the social media posts
    • Supporting charity activities
    • Arranging discounts from your business
    • Talking with employees
    • And, introducing the business to additional investors

    Some of these activities can be completed just for the experience and energy of an entrepreneurial environment, but others may be opportunities for additional personal revenue.  In any event, all activities improve the quality of the investment.

     


  • 08 Jun 2014 3:43 PM | Daniel Taylor (Administrator)

    What can an angel do to improve the investment process?  There are a long list of activities that an angel investor may complete before starting the hunt for the right business opportunity that will improve results and save time:

    • Make a list of world problems that you care about and pick your top three concerns
    • Determine how much money you have to invest
    • Determine how much money you will invest in a single opportunity
    • Determine at what stage in the development of a business that you will invest
    • Determine how long you can leave your money in an investment
    • Determine how much money you want to get back from your investment
    • Determine how much money you need to get back from your investment
    • Determine how much time you will commit to help a business achieve its goals
    • Determine when you can be available to help a business
    • Determine what skills you can bring to help the business
    • Determine what other resources you can make available to help a business achieve its goals: contacts, facilities, equipment, transportation, memberships, discounts, etc.
    • Determine how you would like a business to recognize your contribution to its success: high return on investment, send a holiday card, include you on the podium at an awards event, etc.
    • Determine what would give you the greatest sense of accomplishment: making more money, solving a problem, helping a person, community or the world

    Completion of this analysis will enable an angel to not only to quickly pass on business opportunities that don’t match their preferences, but to actively search out those business opportunities that best match their preferences.  Time expended in looking at stacks of business plans and listening to a string of pitches can be avoided.  This time can be directed to helping a business succeed and realizing the benefits of that success.

     


  • 01 Jun 2014 9:44 PM | Daniel Taylor (Administrator)

    The critical factor in angel investors selecting a business opportunity is the affinity of the investor to the business. An affinity is a natural liking or attraction.  It’s what an investor cares about other than the money.

    Common thinking on angel investing is that money is the only thing that an angel investor cares about.  For some angels this may be true. 

    However, there is a growing recognition that investing is not that simple.  Impact investing is an example of where supporting a social cause has been given priority over making a profit.  Another form is friends and family investing (ignore for the moment that this is often criticized).  Recently, I have advanced the concept of ‘strategic’ investment – a commitment of capital to advance the success of a business.

    The recognition that investing may be based upon emotion or a sense of community or even religious grounds moves the act of investment back within the realm of marketing – why does the investor care?

    This question must be answered by the entrepreneur seeking capital, the investor making an investment choice, intermediaries who are matching entrepreneurs and investors as well as economic development agencies improving access to capital.

     


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