So You Want To Be an Entrepreneur
From March 2005
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Given that most post-dotcom deals are syndicates — the term used to describe multiple VC firms investing a portion of a total investment, with one chosen as the lead investor — Sacramento firms play a key role by leading a round with their favorite Sand Hill firm, then providing local management after the deal is done.
Do You Believe in Angels?
Angels are often an early-stage company’s best source of capital. Angels look less at the viability of an idea and more at the entrepreneur — can he or she take an idea and get it to a place where VC firms are attracted?
Sacramento Angels (and other groups) regularly hold forums for entrepreneurs to make investment pitches to the group.
Other angel investors prefer to go it alone. Jim Schraith, an active local angel who was formerly CEO of AST Research, and more recently, Sharewave, characterizes himself as an angel. He also invests in local VC funds, thus getting exposure to startups from both sides. Schraith says that angels often invest just a few hundred dollars — he invested in a company with the purchase of a computer — to a few hundred thousand dollars.
“They certainly want a return on their investment, and at the same time, they want to nurture and mentor entrepreneurs who want to get started,” Schraith says of angel investors. “Often it’s not even the money that’s important. It’s the kindred spirit of entrepreneurs bouncing ideas around and providing the confidence they need to break out, write a plan, quit their job or buy their first computer.”
What Are You Waiting For?
If you have a dream or a startup team, now is the best time to mobilize. Polish up your demo, put together a slide presentation and give investors (or anyone else you know who might want to help) a call. Don’t be intimidated. Anyone in the startup business who’s worth his or her salt will give you the courtesy of an hour to hear how you want to change the world. Go ahead; pick up the phone.
Do You Believe in Angels?
Angels are often an early-stage company’s best source of capital. Angels look less at the viability of an idea and more at the entrepreneur — can he or she take an idea and get it to a place where VC firms are attracted?
Sacramento Angels (and other groups) regularly hold forums for entrepreneurs to make investment pitches to the group.
Other angel investors prefer to go it alone. Jim Schraith, an active local angel who was formerly CEO of AST Research, and more recently, Sharewave, characterizes himself as an angel. He also invests in local VC funds, thus getting exposure to startups from both sides. Schraith says that angels often invest just a few hundred dollars — he invested in a company with the purchase of a computer — to a few hundred thousand dollars.
“They certainly want a return on their investment, and at the same time, they want to nurture and mentor entrepreneurs who want to get started,” Schraith says of angel investors. “Often it’s not even the money that’s important. It’s the kindred spirit of entrepreneurs bouncing ideas around and providing the confidence they need to break out, write a plan, quit their job or buy their first computer.”
What Are You Waiting For?
If you have a dream or a startup team, now is the best time to mobilize. Polish up your demo, put together a slide presentation and give investors (or anyone else you know who might want to help) a call. Don’t be intimidated. Anyone in the startup business who’s worth his or her salt will give you the courtesy of an hour to hear how you want to change the world. Go ahead; pick up the phone.
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