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Mr Volker;
I have two questions for you and hope that you may be able to answer one if not both. I am working on an idea at the moment, but have been perplexed at two things.
The first is obvious, and is that of funding. I have read hundreds of articles, columns, and books about the benefits of VCs and Angels. Like most people holding on to an idea/dream I am hesitant at approaching VCs and giving 40-70% of the idea and/or business over to them in the form of equity in return for funding to merely get the idea off the ground. What benefits do Angels play in terms of raising capital of any sort? The VEF seems to be High Tech based, so where does someone in BC looking at redefining the ecommerce/financial services marketplace find Angels that are willing to work with entrepreneurs?
Given that is not a simple question or one that can even be answered, what would be the best way in getting my idea out in to the open in the hopes of someone(s) being interested in a financial services idea?
My second question revolves around Angels themselves. There is a wealth of information about VCs but little about Angels. My misunderstanding in regards to the role of Angels is somewhat limited in the fact that I do not understand if Angels are generally looking for a quick way to make a buck or if they are looking to provide money and want to be in it for the long run. Do most Angels look for the “quick buck” or are they looking for a major stake in a company?
If you might be able to help in my understanding of the role Angels play and what avenues are available in exposing my idea to Angels would be of great help. You have a great idea with the Angel Capital Network and I hope that you might be able to help or point me in the direction where I might be able to get some further assistance.
Respectfully,
Chris Reid
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1.Please refer to the writeup and links on www.vef.org/vantec.html
2.Welcome to the real world. Ideas are a dime a dozen. Cash is king. Cash is now and ideas may or may not come to fruition. If ideas are strong ideas - protected by patents, for example, then they are worth more. Otherwise, if they are easily copied, they are worth much less. It's better to have a good idea and cash and be left with 60% of a company than to have just the idea and no help.
3.Angels are NOT (by definition) looking for a quick buck. They like to add value in the form of cash and mentoring with a view to a BIG gain in the medium term - usually a few to several years. They don't want a majority interest - but they do want a significant interest.
4.I'm not too familiar with non-tech angels. The best bet is to network in circles relating to the business area. For example, if you business relates to financial services - talk to successful people in this industry - they and their contacts are the angels who should be able to help you.
Regards
Mike
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