Differentiating between Angel financing and Venture Capital
Angelo Santinelli, North Bridge, Chuck Powell, Haynes & Boone, David Verilli, Hub Angels
Angels bridging to VC & corporate investors
What's an Angel?
Angels High Net Worth Individual - SEC Rule 501 (Reg D)
7 of 10 investments made within 50 miles of investor's home/office
9 of 10 investments are devoted to small, mostly startup firms with fewer than 20 employees
Higher acceptance ratio
Angel groups - Hub Angels - looking for investments that don't need a lot of total capital. Need to have a sufficient portion of the company.
Half for VC firm, half for founders, employees.
24 months ago Hub angels doing preferred. Now doing 1 common and 2 bridge note deals
Entrepreneurs now getting more leverage