Raising Seed Capital

Yesterday there was a panel discussion at the annual Edison conference
(for inventors and entrepreneurs) on how to raise seed capital. It was
moderated by David Bradford, partner at Greenberg Traurig, the 8th largest law firm in the nation. David is also my partner in FundingUniverse.com.

Panelists included myself, Blake Modersitzki of UV Partners and Michael
Keene, former Chief Science Advisor to two Utah governors.

In preparing for the discussion I read through all my markups in Angel
Investing, the excellent book that every entrepreneur and every angel
investor should read about capital. Here are some of the facts and
quotes I wanted to share:

  • Angels fund 30-40 times more companies than VCs, but they do much smaller deals.
  • VCs fund 1-3% of the deals they look at
  • Angels fund 22% of the deals they seriously consider
  • Angels fund 84% of rounds under $250,000
  • #1 source of initial funding for startups is entrepreneur’s own savings (74%)
  • 10-15% of entrepreneurs who pitch at non-profit capital forums raise money
  • 40% of entrepreneurs who pitch at venture forum meetings get funding
  • Top two criteria for angels to invest in an entrepreneur are 1)
    enthusiasm of the entrepreneur and 2) trustworthiness of the
    entrepreneur.
  • 94% of angels consider location to be very important in their decision
  • 80% would have made more investments over the past 3 years if they had seen more good plans

I got a few of these pre-panel notes into the discussion, but I also
took notes because David asked several good questions and I learned
things from both Blake and Mike. I’ll post these later.

2 Comments

  1. Anonymous

    Are you going to post the “good questions” and a summary of what you learned?

    > but I also took notes because David asked
    > several good questions and I learned things
    > from both Blake and Mike. I’ll post these
    > later.

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