Friday, July 18, 2014

What is Seattle Angel Conference in 60 Seconds!

Must Know for Angels & Entrepreneurs- Upcoming Events

The next round of workshops for the Seattle Angel Conference IV are coming together.

We have put together some workshops to talk about some of the areas where people have been asking questions.

As we learn more about different parts of the Angel Investing process, we work to spread the word. 
For example, there are some kinds of investments where an straight equity investment has some disadvantages. David Bangs has been exploring Revenue Based Funding to address some of those problems. Have a discussion with people who are active with Angel Investing and learn how it works well and when it doesn't at our Angel Investing Workshops: 

Link through to registration by clicking on the topic! 

DateNameTopic and registration
(click on topic to link to Eventbrite registration)
LocationTime
July 16David Bangs Revenue Based FundingImpact HUB Seattle6 PM
Jul 22 Geoff Harris, Keith Laepple and Paul LippertThe SAC experience for Angels



Impact HUB KIRKLAND!
6 PM
Jul 29Carter MackleyLegal Documents for FoundersImpact HUB
KIRKLAND
6 PM





Monday, July 7, 2014

Investing in a World with Few Exits -Workshop

Learn about Angel Investing from the Seattle Angel Community
Help us build a stronger startup ecosystem: Stronger Entrepreneurs and Stronger Angel Investments.
 


Workshop #1 for Seattle Angel Conference VI

Investing in a World with Few Exits

Exploring Revenue Based Financing for Angel Investors


David Bangs
Tuesday JULY 15, 6:00 pm 
Impact HUB Seattle


Many investment opportunities do not have clear "exits", where the founders sell their company, and investors make their return on their investment.  In this workshop, David Bangs will share the methods they are using as angel investors to invest in companies with no planned exit.  Learn about "revenue redemption of equity" as an alternative approach that keeps the company closely held, and provides investor returns.

RSVP Today at Eventbrite




David Bangs: 


David Bangs is at Energy Friendly Ventures and is an active member of the Seattle Impact Investors Group. He is a board member of Element 8 ( formerly known as the NW Energy Angels) 
He has invested in over 5 different companies using a Revenue Redemption based Term sheet.




















Friday, June 6, 2014

Illumagear- SAC I Winner Closing Series A- TRACTION!

Traction and Progress in HaloLight TM at Conexpo


Winner of the inaugural Seattle Angel Conference, ILLUMAGEAR continues to show great traction and progress. The company launched it’s first product, The Halo Light™, only a couple of months ago, but in that time, interest and feedback has been very positive and demand has been high. Product has already been shipped to customers around the world. The company attended CONEXPO in Las Vegas in March, the construction industry’s equivalent to CES, and generated over 1600 leads, more than 3x their stretch goal. The company has now generated over 3000 leads and is rapidly building a sales force (they’re hiring!) and locking up distributors in order to drive those leads through the sales funnel.






Series A Round Nearing Completion


The Halo Light is a patented 360ยบ light system worn on any hard hat that produces a halo of light around the wearer, enabling him or her to see and be seen in all directions at all times, especially in low light conditions. ILLUMAGEAR is already working on new products. Longer-term it imagines combining hardware and software to redefine personal active safety on job sites around the world.
ILLUMAGEAR is nearly closed on its Series A round of financing.


To learn more about ILLUMAGEAR, the company and its products, and what it is up to lately, you can visit their website at www.illumagear.com or follow them on Facebook, Twitter, or LinkedIn. You can contact ILLUMAGEAR at info@illumagear.com.





- by Andrew Royal, Illumagear

Wednesday, June 4, 2014

SEC Considering Raising Accredited Investor Requirements

Potential to Eliminate 60% of Angels

The SEC is evaluating changes to the definition of an Accredited Investor. If their suggested changes go thru, it could eliminate 60% of those who currently qualify, potentially halving the size of our group and the U.S. angel community.

According to both SEC and General Accounting Office estimates, adjusting the net worth test for inflation, as advocated by some organizations as a form of “investor protection,” would eliminate about 60 percent of current accredited investors. The two agencies estimate that inflation-based adjustments would increase the net worth standard to about $2.5 million and annual income to $450,000.

More info:


http://dodd-frank.com/sec-chair-discusses-potential-changes-to-accredited-investor-definition/

http://tech.co/angel-capital-association-takes-action-avoid-threat-startup-funding-potential-sec-rule-changes-eliminate-60-percent-angel-investors-2014-05

Take Action:

From the ACA (Angel Capital Association)
Please help us protect angel startup funding by executing the following steps (takes less than 3 min)

(1) Go to following website:
http://1.usa.gov/1mHxnCM

(2) Scroll to Third Quarter, September 27, 2013

(3) Click on “Submit comments on S7-06-13”

(4) Fill out the form (Name, Address etc.)

Suggested Text for comments:(modify as you will)

(5) In the Comments box, please cut & paste the following text (feel free to edit if you wish):

As a member of the Angel Capital Association (ACA) and the Alliance of Angels (Seattle Angel Conference)  I urge the Commission to protect angel funding to ensure the health of the startup economy we support, by retaining the existing financial thresholds in the current accredited investor definition.  These thresholds -- $1 million in net worth or $200,000 in income -- have worked well for decades, creating a vital accredited angel investor sector that is the primary source of funds for early-stage companies that drive the innovation economy and job-creation nationwide, and with very little fraud.

If financial limits were sharply increased, angel investment in early-stage companies would suffer.  An increase in the net worth threshold to $2.5 million, advocated by some, could cut upwards of 60 percent of current accredited investors out of the market.  The startup ecosystem would be devastated by such a dramatic shrinkage of this vital investor pool, especially in regions where venture capital is not prevalent. A contraction in angel investing could stall local economic development, university technology initiatives, and stem innovation and job growth.  At the same time, millions of Americans would instantly lose the opportunity to participate in the innovation economy that is largely the purview of companies raising funds privately from accredited investors.

It is important to consider investor protection, the public interest and our current economy.  However, the SEC should note that, as more accredited individuals have engaged in angel investing, direct investment in startups has remained largely free of fraud.  This is a result of concerted due diligence, negotiated terms, and ongoing entrepreneur support and mentoring that are the hallmark of angel investing. 

Given the importance of the innovation economy to the nation, the need for capital formation in the early-stage sector, and the need to balance access to investment opportunity with investor protection, I urge the Commission to adopt the following approach to the accredited investor definition:

i Maintain the current financial thresholds of $200,000 income per individual; $300,000 for joint filers, or $1 million net worth not including primary residence for individuals to qualify as accredited investors.

ii Incorporate the concept of “sophistication” for individuals who do not meet the above thresholds to prudently expand the accredited investor pool, using a detailed questionnaire to identify qualitative information about knowledge and experience with this type of investment.

Such an approach will continue to provide investor protection while also recognizing the growing role and importance of accredited investor investment in innovation and growth that are essential to serve the public interest and sustain our nation’s economy.

Thank you for your consideration.

(6) Click the “Continue” button, and on the next page, click the “Submit” button

Thursday, May 22, 2014

Startup Discuss.IO is Winner of Fifth Seattle Angel Conference Investment Competition


FOR IMMEDIATE RELEASE


Startup Discuss.IO is Winner of  Fifth

Seattle Angel Conference Investment Competition

Winner receives $155,000 Investment, 33Angel Investors

gain hands on investment training.


SEATTLE, WA. – May 22, 2014 — The Seattle Angel Conference announced today that Discuss IO was selected as the winner of its fifth investment competition, held in Seattle, WA,  at the 220 and Change in Seattle .   Discuss.IO is a Seattle based company that has been building their market research platform for years. They had participated in SAC IV in Nov. 2013, and fell short in their goal to win the investment.  This round they showed their growth, ability to meet their commitments, and solid sales traction, which impressed the investors.  Discuss.IO’s mission is to simplify consumer market research. They use video conferencing and crowdsourcing to connect brands and consumers.  Discuss.IO  will receive a $155,000 angel award investment from the Seattle Angel Conference V LLC .  Given the strength of the candidates, the Angel Investors couldn’t let it stop with one winner.  SocialGlimpz, another brand marketing company, focused on visual engagement with consumers won a second investment of $45,000 from the LLC.

This event’s finalist companies were selected from over 40 companies based throughout Washington that applied to compete at the fifth Seattle Angel Conference. A rigorous selection process (known as due diligence) was undertaken by the 33 active angel investors to select the winning company. Thirty to Fifty hours of investigation was performed on each finalist, amounting to over 240 hours of due diligence.   In the process 15 new Angel Investors were introduced to the investing process. Each investor staked $5,500  to $10,000 to create the  $200,000 investment award for this year’s event.  This rounds investment brings the total investment from the Seattle Angel Conference to a remarkable $835,000  invested in the local economy and over 100 investors educated about angel investing in just 2.5 years of the Seattle Angel Conference.

“The Seattle Angel Conference is all about giving new angel investors mentoring, training and experience, growing the available support and capital for Washington’s many startups, removing a key bottleneck for the economy,” said John Sechrest, founder of the Seattle Angel Conference.   “At the same time, we are helping promising startups improve their business models with support and feedback from successful investors”.

The five  finalists who pitched were:
Grow Plastics – @growplastics Enabling replacement of  solid  plastic products with half as much bioplastic, providing greener and cheaper solutions.
Meshfire - @meshfire   a social media empowerment platform enabling teams to manage the firehose flow of social media for brands.
Discuss.IO - @discuss_IO –simplifying consumer market research, using video conferencing and crowdsourcing  to connect businesses to 11 million panelists
SocialGlimpz - @socialglimpz  -Visual engagement platform enabling brands to gather consumer insights and create user generated content
Zealyst - @Zealyst using data driving software and creative design to build long lasting human relationships and improve engagement and innovation.

Participating companies received awards of a month at Maker Space.   BakerHostetler, Comcast for Business, AterWynne, The Gateway group at Morgan Stanley and SeedInvest also provided sponsorship, making the conference possible.  HubSeattle, SurfIncubator, Thinkspace and Bainbridge Graduate institute provided invaluable in-kind support.

The next Seattle Angel Conference will be held in November 2014.  All Washington startups and interested investors should inquire in June about participating in the next round of educational events, trainings, and competition.  Deadline for applications will be September 1, 2014.

About the Seattle Angel Conference
Each Seattle Angel Conference culminates a 5 month program to educate and train accredited investors as exemplary angel investors through workshops, hands-on practice and mentoring.  The Seattle Angel Conference is an investor driven conference, connecting new angel investors with early stage and seed businesses  in the Greater Seattle Area.  The Seattle Angel Conference introduces qualified investors to the potential, process and rewards of angel investing, and equally importantly, works to encourage, accelerate and coach startup companies in the Seattle areas and across the Northwest. For more information see http://www.seattleangelconference.com. 

###

Contact:
John Sechrest
Founder
Seattle Angel Conference
c: 541 250 0844
sechrest@seattleangelconference.com
                                  

###


Thursday, May 1, 2014

Finalists, Due Diligence and Sponsors!

Finalists and Due Diligence!

The Investors in the LLC (all 20 of them) have chosen the finalists for the May Event.  They have formed due diligence teams, and are working with the selected few companies to really vet the teams, business structures, goals, markets, customers and financials. This is where a huge amount of the learning takes place, both by the Angels and by the Entrepreneurs.

Experienced Angel Investors lead  the due diligence teams, and help the Entrepreneurs build up their portfolio of information on Gust, which will serve them well for all rounds of future investment.  New Angel investors participate in the interviews and process, learning about due diligence by shadowing, doing, and team meetings to review the process and ask further questions


So Who Are the Finalists?

We can't say... due to The Jobs Act and rule  506c, we do not want to risk putting any of our entering teams inadvertently into a perceived "public solicitation".  


So in a preponderance of caution, we  aren't releasing finalists names this year until the actual event. So if you want to know the finalists and hear them share their business strategies, come to the Seattle Angel Conference On May 22nd!

Sponsors

All volunteer organizations need sponsors, and we love ours!

Thank you to our latest sponsors for Seattle Angel Conference