This is an excellent resource for those looking for Angel Capital in the Bay Area, it lists the key groups and some useful metrics.
My advice is to hit the best ones for your idea, I am a member of the Band Of Angels for example and this group is very technology focused so no “sheep farm ideas” here!
Also, note their limits on funding and the stage they prefer.
Keiretsu Forum is an excellent group, well run and very supportive of Entrepreneurs – these guys look at many different types of investments from Real Estate to Software.
Make sure you checkout their web sites and look at their criteria for approaching the group, if you can get an intro in then all the better!
Also, note the costs for pitching and make sure you feel it’s worth the investment.
Take a look and use it as a way to plan your pitching.
Most Active Angel Investors in the Greater Bay Area download pdf
Summary: Keiretsu forum are a professional facilitation service that creates a very structured environment where entrepreneurs have a high quality and well-organized interaction with our investor members who make their own investment decisions on an individual basis following the presentations.
In my dealings with them they had a sensible and structured approach, I had to go through screening that was thorough and helpful. I dealt with two members of the forum team and had several conversations.
I checked out their references and entrepreneurs liked the value brought by the good quality angels as well as the funds raised – it’s quite possible to raise in excess of $1-2M from the forum members.
The forum members seem very savvy and were heavily focussed on either safer investments like real estate type deals or they liked high risk software plays.
In most cases they liked deals on offer with a low valuation but a high return on investment of 8x plus.
I liked the fact they do not take any stock, warrants or other commissions in connection with fundings or new business that occur at our meetings that benefit our presenters. The fee of $6k was very high compared to other angel groups but if you get funded it’s reasonable.
They also offer (and insist on) free coaching for presenting, they help with due diligence and collaboration sessions.
Presentation format: Pre-screening presentations: 15 Min, 10 Powerpoint slides. 7-10 Companies on the night. Actual presentations: 20 minutes, 50/50 pitch and Q&A. 3-5 Companies on the night.
Costs: $3,000 presentation fee is a one-time expense paid by entrepreneurs per chapter non refundable presentation fee. 0% of the money raised.
Contacts: Apply online
Approach: Pre-screening and coaching before any fee is paid or you can present. If you pass screening you may stand up and present to a chapter. In the SF area you have to present to 2x chapters so it’s a $6K fee on a fixed timetable over 2 weeks.
Do’s: Go in with an aggressive and exciting plan that is well presented and shows significant upside on a sensible valuation. Expect a stiff grilling and tough questioning, be confident but not cocky – build rapport..
Don’ts: Be unprepared, long winded, ask for to high valuation on a low return. Don’t be defensive or a wimp.
Audience: Serial entrepreneurs, often highly successful angels. Tough and savvy.
Track record: On average, 50% of our presenting companies receive funding which is a very high ratio. Keiretsu Forum members have invested more than $40 million over the past three years in approximately 70 companies.
Locations: Across US.
What they say: Presenting your business to investors requires you successfully to tell 7 stories.Learn more about them: www.keiretsuforum.com
‘The fundamental business logic story’
‘The total available market (TAM) story’
‘This is a $50m to $100m business story’
‘The product can be differentiated story’
‘The product/service can be sold story’
‘This management team can do it’ story’
‘This is a good investment for the investor story’