Angel Soft - Open Deal

Large Angel Network software provider AngelSoft has now developed a new service designed to allow companies and entrepreneurs to mass submit offering to hundreds of angel groups at one time.

http://www.angelsoft.net/entrepreneurs/index.html

Could be a nice resource for overworked entrepreneurs searching for capital.

Angel Investors and the ACA

In addition to later stage VCs, startups have an old option that is getting fresh legs by being easier to navigate than before, in angel investor networks. The Angel Capital Association is a peer organization of angel investing groups in North America that includes over 250 angel groups.

The presence of such groups makes it much easier for startup companies and their entrepreneur leaders to find much needed seed capital in order to get good companies off the ground. In the past, active networking and luck might net someone that was interested in investing in a startup, but through angel networks entrepreneurs have access to literally thousands of potential accredited investors.

Some of the southeastern ACA members include:

Southeast
Angel Network of Sumner County/ Angel Capital Group - Hendersonville, TN
Ariel Savannah Angel Partners - Savannah, GA
Atlanta Technology Angels - Atlanta, GA
Charleston Angel Partners - Charleston, SC
Eastern NC - Investor Network - Greenville, NC
Emergent Growth Fund - Gainesville, FL
Fund for Arkansas' Future - Little Rock, AR
Huntsville Angel Network - Huntsville, AL
Inception Micro Angel Fund - Greensboro, NC
Mississippi Angel Network - Ridgeland, MS
Nashville Capital Network - Nashville, TN
New World Angels - Boca Raton, FL
Piedmont Angel Network - Greensboro, NC
Seraph Group - Atlanta, GA
Springboard Capital - Jacksonville, FL
Triangle Accredited Capital Forum - Wake Forest, NC
Wilmington Investor Network - Wilmington, NC
Winter Park Angels - Winter Park, FL

VC Symposium

Just a quick update on the Birmingham Venture Club Symposium yesterday.

We had a good crowd of 40-50 attendees at the symposium graciously hosted by Burr & Foreman in their beautiful conference room.

The panel covered a broad range of topics from the state of the economy, aka "Are we in a recession?" (which most felt we are or at least pockets of the economy are) to the current environment in the State of Alabama (which most seemed to see as under served). Overall, it was a very good event and one which I hope continues in the future.

The most interesting thing to me probably related to the realization that although the economy is slowing, deals are still getting done; however the interplay between a lot of VC dollars chasing fewer deals driving prices up and an accross the board increase in due diligence and the proliferation of good secondary market opportunities driving prices down seem to be largely cancelling each other out at the moment, but it is unclear if that balance will maintain.

Private Equity Symposium

Just an FYI, the Birmingham Venture Club - CFA MidSouth Chapter's Private Equity Symposium is today at 4:30pm in Downtown Birmingham at the Wachovia Tower, 3rd Floor.

*Members and Non-members may attend

Birmingham Tech Community Blogs

Just at thought that some of the other birmingham tech/business community blogs and sites hold some insight into how start-ups are viewed and what success factors are most important.

1. http://www.genexodus.com
2. http://www.onebham.com
3. http://www.techbirmingham.com
4. http://www.birminghamventure.com

Small Business Venture Capital in Alabama

One of the things that I get a lot of questions about from clients and other professionals is "how to best fund a startup?"

This is a tricky question because in reality it depends very much on the specifics of the business. Some businesses are definitely easier to get funded than others. Typically, high growth potential companies with existing or potential intellectual property are easier to help get traditional venture capital funding, especially if they have a strong managment team. However, many other companies can get needed funding, but they may have to search and be patient.

The reality is that Birmingham in 2008 is not 2000 silicon valley, with VC money for any dot com startup that has a domain name. Today's startup companies are going to have to show three big things: (1) that the product or service is marketable (cheaper, better, faster), (2) that the company has near term earnings and growth potential, and (3) that the management/ownership group has the expertise to pull it off.

If a new company can show those things then the chances are good that there will be funding available, but it still won't be easy. Many of the VC groups have varying needs for investment vehicles and some have hardcore industry preferences, so entrepreneurs are most likely still going to have to kiss a few frogs before they find a match, even with a great idea.

See examples -

Advantage Capital Partners
Arlington Partners
Bonaventure Capital
Castlebridge Technologies Inc.
Founders Investment Banking
Greer Capital Advisors, LLC
Harbert Management Corporation
Hickory Venture Group
New Capital Partners
Porter Capital Corporation
Porter, White & Company
Pretium Capital Group
REDMONT Venture Partners
Southeastern Technology Fund
Southern Development Council, Inc. (SDC)
Stonehenge Capital Company, LLC
Tullis-Dickerson & Co., Inc.
Vulcan Medical Ventures
Waveland Ventures


Of course, there are other ways to fund a startup, but that is another post for another day.

"George W. Bush" on Estate Planning

Because "between 100 and 200% of Americans don't have a will or an old testament"....