In today’s post, I address the question: what is the process of raising money from angels / angel investing groups? The process I describe is based on the VANTEC angel group (of which I am a member) as well as e-Fund (a vehicle through which I invest in startups). This process will be similar to what startups experience with other angel groups.
Today I begin a series of posts on Angel Investing. Over the last several months I have enjoyed attending several events around Vancouver, networking with angels and entrepreneurs. At these events, I find that I get asked a lot of the same questions from young entrepreneurs looking to raise seed money from angel investors. If I get to the heart of their questions, the questions can be reduced to two, which I paraphrase below:
1. I’ve got a great idea that I am working on; how can I raise money to get my “work in progress” product/service ready to take to market?
2. What is the process of raising money from angels/angel investing groups?
The intent of this posts is to answer the first of the two questions above. In my next Angel Investing post (scheduled for June 16th) I will answer the second question. In future posts, I will also post about deals from the perspective of an angel (e.g. what is an angel looking for in a startup company? what are the motivations of an angel investor?). However, from recent experience, I feel there is still a requirement to educate young/first time entrepreneurs on some of the basics of fundraising for early stage start-ups (covered in this post) and on the process of raising funds from an angel investor and/or angel investor group (to be covered on June 16th).